HIPAA Nondiscrimination Rules—Workplace Wellness Incentives

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Workplace wellness programs often incorporate incentives or rewards to promote healthy lifestyle choices and discourage behaviors that are detrimental to employees’ good health. A workplace wellness program that relates to a group health plan must comply with HIPAA’s nondiscrimination rules. These rules allow employers to provide incentives or rewards as part of a wellness program, provided the program follows certain guidelines.

In addition, beginning in 2014, the Affordable Care Act (ACA) adopted the existing HIPAA nondiscrimination requirements for wellness programs with some modifications, while also increasing the maximum reward that can be offered under these programs.

This Compliance Overview provides an overview of the types of workplace wellness programs and HIPAA’s rules on the incentives or rewards that can be offered under the programs.

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