Wellness Incentives

HIPAA Wellness Incentives

Before the ACA, under the HIPAA wellness rules, an employer could offer financial incentives of up to 20% of the cost of health plan coverage to participate in health­-contingent wellness programs. Beginning in 2014, the 20% cap was increased to 30% with an additional 20% available to reward compliance with tobacco use cessation programs (for a grand total of 50% for compliant tobacco programs).

Neither American Fidelity Assurance Company nor American Fidelity Administrative Services provides tax or legal advice and, given the complexity of these laws, we always recommend working with your legal counsel on how the laws impact your specific situation.