A survey of employers finds that increasing employee wellness incentives is the most beneficial aspect of the health reform law.

Lockton Benefit Group conducted their Employer Health Reform study in May, and discovered that 37 percent of their clients agreed wellness incentives were the best element of health reform.

In 2014, employers will be able to offer an incentive of up to 30 percent of an employee's total healthcare premium, if the employee is doing everything asked to improve his or her health and reduce medical costs. This is an increase from the 20 percent incentive available now. More than 40 percent of Lockton Benefit Group client-companies responded to the confidential survey, which explored the impact of health reform law on group health plans.

"We know that our employer-clients like the opportunity to reward employees that make healthy lifestyle choices," said Dr. Ian Chuang, Lockton Medical Director and member of the Health Reform Advisory Practice in a statement. "The difference in cost for health insurance for an employee with this incentive can be thousands of dollars annually, depending on the total premium cost. So for the employer, this is a true benefit of the health reform law."

Dr. Chuang said that savvy employers realize they will ultimately reduce their health insurance costs by addressing the risks leading to illnesses and claims, which will also improve employee productivity.

"The incentive program has to be designed to promote health and prevent disease," Chuang said. "Incentives like this are often key components in the overall Health Risk Management strategies we work closely with our clients to design."

Edward Fensholt, director of Lockton's Compliance Services Division and a member of the firm's Health Reform Advisory Practice added, "We expect to see further guidance under health reform that could allow employers to raise the incentive to 50 percent in special circumstances. We will continue to work with our clients to keep them informed on the latest legislation and how it impacts their business."

Instant Insights /

Wellness incentive &quot;most beneficial&quot; aspect of health reform

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Wellness incentive "most beneficial" aspect of health reform