Wellness Incentives

In attempts to reduce the annual impact of health insurance renewals, Employers are taking a proactive approach in the health and wellness of their employee population. 

The first step in changing the culture is adopting a Wellness incentive program at the workplace to assist employees in their efforts of becoming a healthy, wise consumer. 

To motivate and invite participation, employers often provide a financial incentive in conjunction with completion of a Health Risk Assessment or other Wellness related activities promoted by the employer.

Instead of providing employees with gift cards, merchandise, or cash, CareFlex recommends the establishment of a Health Reimbursement Arrangement. By creating a HRA program structured to reimburse participant out of pocket medical expenses, Employers can educate employees on becoming wise healthcare consumers.

Similar to traditional HRA programs, Plan Sponsors determine the parameters of the reimbursement program including eligibility and funding. The Employer can decide to allow participants to rollover unused funds to future plan years and what items qualify for reimbursement from the HRA account. Employers developing an HRA plan should remember that non-discrimination rules apply, just like with other employee benefits.

As a reminder, the Health Reimbursement Arrangement does not require the account to be prefunded. The Employer is simply making a promise to honor the reimbursement request once a participant incurs a qualified medical expense. Every reimbursement made from the HRA program is tax deductible to the employer.

A successfully structured HRA Wellness program as the potential for employers to experience significant savings, maximizing their return on investment. Contact CareFlex Benefit Solutions today to discuss implementing a Health Reimbursement Arrangement Wellness program today.