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Is It Necessary to Incent Companies to Initiate Corporate Wellness Programs?

Wellness incentives may seem like an effective way to get workers excited about Corporate Wellness Program – but is it smart?

This helps and encourages organizations to understand the importance of maintaining a healthy employees, not only for the welfare of its workers, but as well as the welfare of the corporate bottom line … then, yes, it could be necessary.

Tax Breaks as Wellness incentives

In 2007, two senators decided to band together to create the “Healthy Workforce Act.” This act is designed to encourage organizations to keep workers healthy and prevent disease. The senators believed that having a country focused on “well care” versus “sick care” would decrease the overall costs of health care for everyone. They decided to start with America’s employees.

The legislation, introduced by Iowa Senator Tom Harkin and Oregon Senator Gordon Smith, states that businesses would receive a Wellness incentive – a fifty percent tax credit – if they offer to their workers a Corporate Wellness Program that meets the following criteria:

1) A health education and awareness component, which could include Health Risk Appraisals and Health Screening and Biometric Testings.
2) A behavioral change component – such as counseling, seminars, or self-help materials to empower workers to lead healthier lifestyles.
3) A supportive environment component – including providing meaningful incentives to taking part in workers, such as a reduction in health premiums or allowing workers to engage in walking Corporate Wellness Programs during the workday.
4) The creation of an employee engagement committee – which would tailor the Corporate Wellness Program to the needs of the employees at a particular company.

If this law gets passed, many organizations will be scrambling to offer Corporate Wellness Programs in hopes of receiving the Wellness incentives.