New IRS and Labor Department rules make it easier to offer financial incentives to employees for meeting health goals (such as health-plan premium differences between smokers and nonsmokers).
Reason: The rules clarify how to offer such incentives without violating HIPAA nondiscrimination rules. The upshot: Total rewards can’t exceed 20 percent of the cost of employee-only coverage under the plan. The wellness reward must be available to all workers, and employees must become eligible once a year.
Read an FAQ on these and other new health nondiscrimination rules at www.dol.gov/ebsa.