The key to successfully changing the cost of health benefits is the compliant follow through by plan members with personalized health improvement action steps throughout the year. To encourage individuals to be proactive and take intervention steps throughout the year, the US Department of Labor has issued regulations that allow employers to incentivize plan members to act. The regulations require that a plan be administered fairly and objectively across a plan member population; that the requirements be published in advance and available at all times to participants; and, that when appropriate, the requirements for an individual be medically accommodated based on their unique circumstances.
Positive incentives encourage employee participation and make it more likely that participants will follow through with their Healthy Life Plans. The financial incentive system encourages participants to be responsible and help reduce health risks and serious illnesses.
The system monitors participant adherence to their annual Healthy Life Plan and sends written reminders to participants who are not following their plans. If the participant chooses to ignore the warnings, they could be required to pay a higher health care benefit premium.
Employers are strongly encouraged to use a financial incentive system. LivingWell Health Solutions' clients who implement a financial incentive system see higher participation rates and greater savings.