Legal and Tax Implications of Incentive Program Design
AUDIOCONFERENCE ON CD OR AUDIO ON-DEMAND
Sponsored by Disease Management Advisor
presented on May 13, 2008
Incentive programs for health plan subscribers are becoming increasingly popular and provide a variety of benefits to both the individual and the provider. Individuals gain because they increase their healthy behavior and are generally rewarded financially with either cash in their pocket, a reduction in costs of their health care coverage, a contribution to their flexible spending account, or a prize or gift. Health plans and employers win because incentive programs encourage customer loyalty and healthier participants, which lead to reduced healthcare costs and increased productivity in the long run.
In the wake of increased frequency of incentive programs, compliance standards must be met. Health plans, disease management programs, and wellness companies need to be aware of their legal responsibilities. Incentive based programs must be designed to meet ADA, ERISA, Internal Revenue Code and HIPAA compliance.