Some Companies Penalize for Health Risks
Some Companies Penalize Workers Who Have High Health Risks Such As Obesity, High Cholesterol
First they tried nudging. Now companies are penalizing workers who have high health risks such as obesity and high blood pressure or cholesterol as insurance costs climb.
Lee Morrison, 51, doesn’t mind the push, which came in the form of added insurance charges from his employer, Western & Southern Financial Group.
“I knew if I wanted to be healthier and pay less, it was up to me to do something about it,” said Morrison, who has lost 54 pounds and lowered his body mass index enough to earn refunds the past two years.
A small number of companies have linked health factors to what employees pay for benefits, but the practice is expected to grow now that some federal rules have been finalized, spelling out what’s allowed by law. Employee advocates worry that other anti-discrimination laws such as the Americans with Disabilities Act won’t cover the person who is 20 or 30 pounds overweight.
The businesses are deducting from employees’ paychecks, adding insurance surcharges or offering insurance discounts or rebates only to low-risk workers.
“Employers know they have to do something,” said Garry Mathiason, a senior partner at the national employment and labor law firm Littler Mendelson, based in Boston. “I believe that in just the next two years more employers will turn to penalties to change employee behavior.”
Mathiason said more than 300 companies have sought advice on creating more aggressive wellness programs since the firm released a study in April on legal issues and trends associated with requiring healthy practices.
Health care spending in the United States is estimated to reach $2.2 trillion this year, with at least 54 percent of spending in the private sector, and is expected to nearly double by 2016, according to the National Coalition on Health Care.
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insurance, bad health penalized, high premiums
insurance, bad health penalized, high premiums
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