What workplace wellness programs are
Workplace wellness programs are employer-sponsored activities and services meant to encourage healthier habits or help employees manage their health. They range from simple perks, such as a discounted gym membership, to organized programs with health questionnaires, screenings and coaching.
Not all employers offer them, and rules governing them vary by country, state and employer. Whether such programs actually improve health or lower costs is debated, and results vary. This article is general information, not medical, legal or insurance advice.
Common features
- Health risk assessments. A questionnaire about lifestyle and health history, sometimes paired with measurements such as blood pressure.
- Biometric screenings. On-site or lab tests, such as cholesterol or blood sugar, with results shared with the employee.
- Fitness offerings. Gym discounts, step challenges, walking groups or fitness trackers.
- Coaching and condition support. Phone or app-based help with goals such as weight management, tobacco cessation or managing a chronic illness.
- Mental well-being resources. Meditation apps, stress workshops and links to mental health care or an employee assistance program.
- Preventive reminders. Encouragement to get routine care. These often work alongside plan benefits for preventive care, which may be covered at little or no cost to you.
- Financial and sleep programs. Some employers include education on these topics.
How incentives work
An incentive is a reward for taking part. Common forms include:
- gift cards or cash
- a premium discount or a lower payroll deduction for health coverage
- a contribution to a health savings account
- extra paid time off or prize drawings
Incentives are often described in two general ways:
- Participation-based. You earn the reward for doing an activity, like completing an assessment, regardless of results.
- Outcome-based. The reward depends on reaching a health target, such as a certain blood pressure reading, or on showing progress. These tend to receive more legal attention, and laws often require an alternative way to earn the reward for people for whom a target is not medically feasible. The details depend on where you live.
A hypothetical example: a program might offer a $20 per month premium discount for completing a screening. Over 12 months that totals $240. Whether that is worth it to you depends on how comfortable you are with the screening and the data it collects.
Privacy questions
The most common concerns involve what information is collected and who sees it. Questions worth asking include:
- Who runs the program? Many are run by outside vendors. In some places, health information handled by a wellness program that is part of the group health plan has special protections, while information collected in programs outside the plan may be treated differently. Ask which applies.
- What does my employer see? Employers often receive only combined, de-identified summaries, but practices differ. Read the privacy notice or consent form.
- Is participation voluntary? In many places participation is meant to be voluntary, though incentives can make declining feel costly.
- How is data stored and shared? Ask how long data is kept and whether it may be shared with other companies.
- Are apps and trackers involved? Data from wearables and apps may be covered by the vendor’s terms, not by the rules that cover medical providers.
If you are uncomfortable with any part, you can ask whether there is an alternative way to earn the incentive. Ask in writing if you can.
Other considerations
- Fairness and accessibility. Programs should generally be available to people with different abilities and health conditions. If a program is hard for you to use because of a health condition, ask about accommodations.
- Tax treatment. Cash and gift-card rewards may be taxable income in some places, and rules vary.
- Interaction with insurance. Participating normally does not change what your plan covers, only any discount or reward. How participation affects your coverage or premium should be spelled out in the plan documents or a program description.
Weighing it up
Programs vary from useful to mostly cosmetic. Consider whether you value the services, what you are asked to share and what you gain. Read the details before agreeing, and keep a copy of anything you sign.