Many employers in the United States got rid of wellness programs in favor of managed care insurance. Yet wellness programs help to create a healthy work environment. According to St. Louis Business Journal, wellness programs "provide economic benefits by reducing absenteeism, reducing on the job injuries and worker's compensation cost and reducing disability and management costs." It is for that reason that the reformed health care law provides incentives for wellness programs at work sites.
Public Education and Wellness Programs
Under the new health care law, a substantial amount of federal money will go towards the development of natural health promotion plans including public education on the importance of community and work site wellness programs. A corporation will be given access to government Web portals and other tools in order to find pragmatic ways to increase participation in the wellness programs and develop uniform measures to assess the benefits of a program on a worker and health care expenditure.
Participation
The full effects of health care reforms entirely hinge on the size of the "company, location, existing insurance, wellness plans and how proactive your company is" intends to effect the new health care law known as the Patient Protection and Affordable Care Act, according to Pay Scale, a company that provides compensation day in the U.S. and Canada. However, the law is partly designed to encourage corporations to provide incentives to employees to live healthy lifestyles. It increases wellness incentives from 20 to 30 percent of the total premiums beginning 2014 for taking part in healthy programs such as exercising and quiting smoking. A survey in 2009 by the Kaiser Family Foundation revealed that the average insurance for a family is $13,375. That would translate into an annual tax credit of $1,337 for each employee in 2014, under the law.
Small Businesses
Small firms, companies with less than 25 workers with an average income of $50,000, or less, are eligible between 2011 and 2013 for a tax credit of 35 percent of their contribution if they pay at least half of employees' health insurance premiums. If a small business purchases insurance, in the insurance changes which will come into effect in 2014, the tax credit will soar to 50 percent. Small companies with up to 100 employees that do not have existing wellness programs are eligible for grants from a $200 billion five-year program beginning 2011.
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