As is common to other forms of insurance, should employees who "live well" actually "pay less" for their group health insurance?

Should employees be financially rewarded for following disease prevention practices and making positive health choices? Should employees who live well be allowed to pay less?  While it may be uncommon to think of such a fair and equitable approach in relation to group health insurance, it is very common with other kinds of insurance we buy.  Consider the following:

      Good drivers pay less for car insurance because they have reduced their chances of causing an expensive claim

      Non-smokers pay less for life insurance because they will live longer than smokers

      Home owners pay less for insurance if they have smoke detectors in their home

While I have many concerns about the recently passed federal health care reform law, one thing they got right was liberalizing allowable wellness plan financial incentives under HIPAA.  Currently employers can provide financial incentives for wellness of up to 20% of the benefit value (i.e. premiums); in 2014, it will increase to 30%. 

There are programs available today that are: (1) totally voluntary; (2) attract over 95% participation among employees; and (3) lower medical trend and can deliver measurable return-in-investment (ROI) in the first year.

Other than maintaining status quo for the sake of tradition, or viewing the idea with skepticism, as in thinking or actually saying that things can’t be changed, or “that’s just the way it is”, why not “live well and pay less”?


Tony Kahmann, Benefits Utilization Consultant
Waldo Agencies
3081 S. Conda Ave.
Meridian ID 83642
208-405-5820 Cell (primary)
888-509-5433 Nyssa Office

“When you see what we see, you'll think and act differently"

Posted via email from Waldo Enterprise Client Group

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