Employers Penalize Workers For Health Risks

Employers Penalize Workers For Health Risks in Group Health Insurance

Here's a new trend to get people to live healthier lifestyles — companies penalizing employees for health risks. Some employers are starting to deduct from paychecks and add insurance surcharges for workers who don’t meet requirements for obesity, blood pressure, and cholesterol levels.

For those who keep track and improve their health can actually receive discounts and rebates for insurance, reported the Associated Press.

"We want more people to participate so that they can take control of their health," said Clarian Health spokesperson, James Wide.

Such a policy raises some controversy, naturally. Some workers are embracing the idea — glad for an incentive to become healthier. One employee of Western & Southern Financial Group lost 54 pounds and has been receiving insurance discounts for over 2 years.

"I knew if I wanted to be healthier and pay less, it was up to me to do something about it," said the 51-year-old.

On the other hand, not everyone agrees. Some believe it's unfair to punish for health conditions. They also contend that the policy invades an employee's privacy.

"I think it's too harsh to charge people for things they can't always control" said one employee who is glad she doesn't work in a company that charges health penalties.

President of the National Business Group on Health, Helen Darling, thinks employers prefer positive incentives rather than penalties. The National Business Group on Health represents over 200 of the largest employers in the U.S.

"I think it's a mistake to use penalties for something as complicated as maintaining weight in a society that does everything to make you inactive," said Darling. "It can make people mad, and we are in a war for talent."

But Ohio-based Scott's Miracle-Gro Company reported 95% of their employees participated in wellness programs and risk assessments after the company instituted health penalties. They charge employees $40 per month for not taking risk assessments and $65 for workers who don't show they're trying to reduce their high health risks.

"We think that personal accountability is a big part of driving overall wellness, but we also provide our associates with the tools they need," said spokesperson for Scott's Miracle-Gro, Jim King.

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