Trying to understand how wellness incentives work -- What's in it for employers, from a monetary benefit standpoint? Do they save up on taxes or insurance costs? (If yes, how does it work?)
Ask HN: Do wellness incentives help employers save money on taxes and insurance?
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Re: Ask HN: Do wellness incentives help employers save money on taxes and insurance?
#2Insurance companies usually offer benefits. Many plans offer reimbursements for gym memberships, discounts for companies that drug test, etc.. Moreover, the average cost of an group is a function of the health of its members--the healthier the company can get it's employees, the lower premiums are for everyone, because its less risky to insure.
Re: Ask HN: Do wellness incentives help employers save money on taxes and insurance?
#3I'm not necessarily an expert in this, but myself and my team just finished building a wellness product for a company that provides wellness portals for other companies.
Yes, they save on insurance costs. A lot of big companies run their own insurance plans and are able to negotiate better rates and credits if they can simply show that:
1. They provide a way for their employees to build healthy habits
2. As a result, if their employees complete certain milestones, (such as filling out Personal Health Assessments or attending screening events) they can get discounts.
I imagine this would become more sophisticated in the future, maybe providing better rates if a company can show that their employees are consistently improving their health year over year.
Re: Ask HN: Do wellness incentives help employers save money on taxes and insurance?
#4I'm not necessarily an expert in this, but myself and my team just finished building a wellness product for a company that provides wellness portals for other companies. Yes, they save on insurance costs. A lot of big companies run their own insurance plans and are able to negotiate better rates and credits if they can simply show that: 1. They provide a way for their employees to build healthy habits 2. As a result,…
Thanks so much. Is there any documentation online that you know of which has more information?
Re: Ask HN: Do wellness incentives help employers save money on taxes and insurance?
#5Insurance companies usually offer benefits. Many plans offer reimbursements for gym memberships, discounts for companies that drug test, etc.. Moreover, the average cost of an group is a function of the health of its members--the healthier the company can get it's employees, the lower premiums are for everyone, because its less risky to insure.
Thanks. Do you have any specific advice in terms of how this "better incentives-better rates" thing works?
Re: Ask HN: Do wellness incentives help employers save money on taxes and insurance?
#6I'm not necessarily an expert in this, but myself and my team just finished building a wellness product for a company that provides wellness portals for other companies. Yes, they save on insurance costs. A lot of big companies run their own insurance plans and are able to negotiate better rates and credits if they can simply show that: 1. They provide a way for their employees to build healthy habits 2. As a result,…
Thanks so much. Is there any documentation online that you know of which has more information?
I don't unfortunately. The discount/credit requirements can vary a lot from what I've seen though. Some companies require you to do certain things like track certain vitals, while others just want a PHA filled out. Those goals are usually passed on to employees in the form of gift cards/cash in order to incentivize them to actually do these things. The product we built was effectively a CMS that allows it to be customized for each client.
Re: Ask HN: Do wellness incentives help employers save money on taxes and insurance?
#7Insurance companies usually offer benefits. Many plans offer reimbursements for gym memberships, discounts for companies that drug test, etc.. Moreover, the average cost of an group is a function of the health of its members--the healthier the company can get it's employees, the lower premiums are for everyone, because its less risky to insure.
Thanks. Do you have any specific advice in terms of how this "better incentives-better rates" thing works?
Typically when you shop around for insurance, your agent will make you aware of whatever benefits/incentives are available to you through the specific plans. In terms of keeping overall cost of your plan down, just do whatever you can to make sure they don't get sick/go to do the doctor and use insurance. A high deductible would be beneficial, for example.
Re: Ask HN: Do wellness incentives help employers save money on taxes and insurance?
#8(Hope this helps someone like me.) Here is a link I was able to find that throws some light on Tax Benefits/Implications: https://www.shrm.org/legalissues/federalresources/pages/fede...
Still looking for info on Insurance Benefits. (That seems to be a murky area....any info would be very helpful.)
Re: Ask HN: Do wellness incentives help employers save money on taxes and insurance?
#9If you look a little deeper, the foundation of the concept of "Wellness Programs" is to raise all rates paid by employees across the board, then provide discounts for behaviors that are approved (basically sharing PMI data with a 3rd party). In the US this is because - to my understanding - laws prevent insurance companies and companies from 'discriminating' in their pricing. As in, they can't penalize most people for simply being unhealthy (vs. legal to penalize for tobacco use) so the way to soften the bottom line effect is to raise everything and give discounts.
In my experience there is simply surface-level masking by calling it a "Wellness Program" instead of a data collection healthcare discount program, because a lot of lifestyle changes needed to promote genuine health aren't really incorporated. As in, healthier diet of fresh foods, better rest at night, free access to exercise facilities.
Re: Ask HN: Do wellness incentives help employers save money on taxes and insurance?
#10It's a privacy invasion scam. At a previous employer they wanted to track our steps and our GPS location and also wanted us to record every glass of water we drink.
It's a disgusting ruse. I don't care if they were going to give me $300/yr, my privacy is worth more than that.