Effective for plan years beginning on or after Jan. 1, 2014, the Affordable Care Act adopts existing nondiscrimination rules for health-contingent wellness programs and increases the maximum reward that can be offered under these programs. On May 29, 2013, final regulations were released that implement these changes. Specifically, the regulations retain the proposed nondiscrimination rules, although they divide health-contingent wellness programs into activity-only wellness programs and outcome-based wellness programs and apply the rules differently in some cases. The final rules also increase the maximum reward to 30 percent of the cost of health coverage in general, and 50 percent for programs designed to prevent or reduce tobacco use.
The regulations apply to both grandfathered and non-grandfathered group health plans and group health insurance coverage for plan years beginning on or after Jan. 1, 2014.
Click Overview of the Final Rules on Workplace Wellness Programs to learn more.
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