Posted on March 17, 2009
Chapter 592: This chapter authorizes certain insurance providers to establish wellness programs in conjunction with their issuance of group accident and health insurance policies or group subscriber contracts. Corporate wellness programs have proven beneficial to both employees and their employers. Research has shown that such programs result in higher productivity, reduced absenteeism, increased employee morale and loyalty, as well as a reduction in the overall use of health care benefits (see generally, Michael E. Porter, et al., What Should Employers do about Health Care?, Working Knowledge, Harvard Business School, July 16, 2008; Simona Covel, Companies Win as Workers Lose Pounds, The Wall Street Journal, July 10, 2008; Kelley Holland, Waistlines Expand into a Workplace Issue, The New York Times, June 22, 2008; Workplace Wellness Programs, available at www.wellnessproposals.com/workplace-wellness-programs). In fact, one study indicates that, for every dollar spent on employee wellness, employers earn back $3.48 in reduced health care costs and $5.82 in lower absenteeism (Center for Prevention and Health Services (2005)).
This legislation expands upon the concept of employee wellness programs by allowing accident and health insurers, medical and health services corporations, and health maintenance organizations to offer similar programs in conjunction with their issuance of group policies or subscriber contracts. Such wellness programs, defined in the bill as those "designed to promote health and prevent disease," are intended to improve the overall health, well-being and quality of life of participants. They may include a smoking cessation component, weight management or stress management services, as well as educational materials regarding the importance of healthy nutrition. Permissible incentives for participation, meanwhile, may include reimbursement for costs associated with participation in smoking cessation and weight management programs or membership in a health club or fitness center, and the waiver or reduction of co-payments, coinsurance and deductibles for preventive services covered under the group policy or subscriber contract.
Signed by Governor Paterson on September 25, 2008, the provisions of this chapter became effective immediately. (S.4675-A/A.10884-A)
