Employers are increasingly turning to some type of incentive program to encourage healthy behavior by their employees–and penalizing them for nonparticipation, according to a study by Midwest Business Group on Health.
"Our national survey found that over 80 percent of responding employers are utilizing some form of incentives with 41 percent using or planning to use outcomes-based incentives to increase engagement and participation as well as motivate healthy behaviors in employer-sponsored programs," Larry Boress, Midwest Business Group president and CEO, said in a statement.
And when employees don't take part, they might see increased health care premiums and coverage plan limitations, the study found. More than 37 percent of employers polled said they now rely on penalties to promote wellness with employees.
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"Most employers find that unless they offer some form of incentive, employees and dependents often don't participate in programs that are meant to prevent and reduce chronic disease, resulting in millions of benefits dollars being wasted," Boress said.
Midwest Business, based in Chicago, surveyed 94 employers of various sizes, ranging from less than 200 employees to more than 25,000, for its study.
It found that outcome-based initiatives are now used by 13 percent of respondents, and that major growth is ahead, with 28 percent of respondents saying they anticipate implementing new programs in the next year or two.
Among the respondents that say they incorporate outcome-based initiatives in their wellness plans, 54 percent link incentives to improvements in an employee's health.
Worksite clinical screening programs are especially popular among respondents; a whopping 94 percent of respondents say they have such programs in place.
Still, 95 percent of respondents say launching an outcome-based program can have its challenges. Out of the respondents that do not offer incentives or disincentives, 53 percent say these programs fail to complement their corporate cultures, and 47 percent say they are unsure whether these programs work.
For respondents that do offer incentives, 62 percent do so by cutting premiums, 38 percent give out gift cards, and 5 percent offer merchandise.
Forty-three percent of respondents using disincentives report that they ask employees to share more of the cost of their premiums, while 14 percent say they impose higher deductibles or out-of-pocket fees.
As part of the Affordable Care Act, employers next year can increase their incentives from 20 percent to 30 percent of total coverage. Sixty-seven percent of respondents say they are very likely or likely to up their incentives.
ACA also permits employers to increase coverage value from 20 to 50 percent for tobacco users. According to 48 percent of respondents, they are very likely or likely to do so.
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