By Matt Dunning, Crain News Service
CHICAGO (March 27, 2013) — The percentage of employers using penalties to drive participation in employee wellness initiatives is expected to grow considerably in the next few years.
That was among the findings of a survey by Lincolnshire, Ill.-based Aon Hewitt, the human resources consulting arm of Aon P.L.C.
Among the 83 percent of employers that offer incentives for participation in wellness and health management programs—such as health risk questionnaires, biometric screenings and smoking cessation programs—just 5 percent of employers exclusively use health insurance premium increases and other penalties, while 16 percent offer a mix of rewards and penalties. Meanwhile, 79 percent of employers only use rewards—such as premium discounts, cash or gift cards—to incentivize their employees to participate in wellness initiatives, according to Aon Hewitt's forthcoming 2013 Health Care Survey, due out in April.
However, 58 percent of the nearly 800 employers surveyed said they plan to impose penalties within the next three to five years on employees who "do not take appropriate actions for improving their health," according to Aon Hewitt's findings.
Targeting specific outcomes
The percentage of employers tying incentives to specific health management outcomes also is expected to grow, Aon Hewitt's study found.
Approximately 24 percent of employers offer incentives for progress toward or achievement of healthy blood pressure, body mass index, blood sugar and cholesterol, while more than 66 percent said they are considering implementing outcomes-based incentives within the next few years, the firm said.
This report appeared in Business Insurance magazine, a Chicago-based sister publication of Tire Business.