Monday, April 01, 2013

Should Employers Penalize Employees Who Don't Engage In Healthy Behavior?

See Employers increasingly are looking to lower their health care costs by using incentives such as cash rewards by Katie Thomas of the New York Times. Excerpts:
"Employers increasingly are looking to lower their health care costs by using incentives such as cash rewards to persuade workers to make better lifestyle choices, according to survey findings released Monday.

But the survey, by Aon Hewitt, a human resources consulting company, also found that employers aren't always so benevolent: A growing number also are penalizing workers who do not make healthy changes, such as quitting smoking or losing weight.

The survey, of 800 large and midsize employers in the United States, found that 84 percent use some kind of carrot or stick to try to nudge employees to improve their health. Of those, 79 percent offer rewards, while 5 percent imposed penalties. Sixteen percent used a mix of both."

"CVS Caremark, the large pharmacy and drug-benefit provider, recently said it would require its employees to report their weight, blood sugar and cholesterol or be forced to pay an annual penalty of $600. It also will require that smokers try to quit."