EEOC Weighs in on Employer Wellness Plans

Posted by BAS - 23 April, 2015

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Last week, the Equal Employment Opportunity Commission (EEOC) issued proposed rules describing how employer wellness programs can be structured to satisfy the Americans with Disabilities Act. Wellness programs with disability-related questions and/or medical examinations must not run afoul of the ADA. 

  • A wellness program with health inquiries must be voluntary to satisfy the ADA. 
    • To be voluntary, a program that asks for disability or medical information can offer an incentive of up to 30% of the total cost of employee-only coverage. The incentive can be structured as a reward or a penalty, but cannot exceed the 30% maximum.
    • A voluntary wellness program must be reasonably designed to promote health or prevent disease, without being overly burdensome.
  • Reasonable accommodations must be offered to employees with disabilities to allow them to earn the wellness program incentive.
  • Notices must be provided to employees to explain what information will be collected, how any collected medical information will be used, and what protections will apply to the information.
  • Employers cannot deny health coverage or limit access to health coverage for not participating in the program. 

More and more employers are implementing wellness programs with the expectation of lowering amounts expended on medical care. This new guidance provides clear rules to follow in structuring such programs.

 

Topics: Wellness Programs


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