Posts Tagged - ‘wellness incentives’

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Wellness Incentives for Individual and Family Health Insurance

Wednesday, April 21st, 2010

Image: D Sharon Pruitt under CC 3.0

According to researchers at Harvard, wellness incentives from insurers will help people save large amounts on their health insurance plan premiums!

How much will individuals save?

  • With a 30% discount: they’ll save $1,447 annually, on average.
  • With a 50% discount: $2,412

What about a family health insurance policy? The savings are even more substantial:

  • 30% discount: $4,013 savings
  • 50% discount: $6,688 in annual savings

The healthcare reform law promotes these incentives as a method of reducing costs, since they encourage policyholders to take better care of their health.

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Group Health Insurance Wellness Incentives Will Increase

Monday, April 12th, 2010

Image: fuzzcat under CC 3.0)

An increasing number of companies have enacted wellness incentives as part of their group health insurance offerings. Such programs are meant to save money on claims, while rewarding employees for healthy habits. The healthcare reform law allows the benefits to become more attractive.

Currently, the maximum incentive that can be offered for quitting smoking, weight loss, or other healthy habits is 20% of the total cost of a health insurance premium–including both the employer’s and employee’s portions. In 2014, the maximum incentive will be increased to 30%.

In other words, affordable health insurance will be easier to find for those who are proactive about their health.

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Encouraging Activity With Group Health Insurance Discounts

Thursday, April 1st, 2010

(Image: Ed Yourdon under CC 3.0)

Some businesses are saving money on their group health insurance by encouraging exercise and other activity. One firm reports that they’ve saved over 5% on claims since enacting the program a year ago!

Employee wellness incentives are increasingly common, but this is a new spin on it. The firm provides electronic pedometers that track activity levels, in addition to online support. If they meet certain goals, the employee can save more than $100 on their health insurance premiums.

Currently, the programs are voluntary, and employees are not penalized for failing to reach their goals. (Instead of having their premiums increased, they simply stay the same–and forgo the opportunity for savings.) That may be why these programs have high participation rates; anywhere from 50-80% of the average workforce gets involved.

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