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Controlling Health Care Costs With Wellness Programs

Law360 (April 30, 2007, 12:00 AM EDT) -- On December 13, 2006, the Internal Revenue Service and Department of Labor finalized regulations under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) that established final rules for the implementation of wellness programs.

Under these rules, group health plans can provide rewards or impose surcharges equal to as much as 20% of the cost of coverage based on whether the covered persons satisfy objective health standards.

This article briefly summarizes these rules and provides some options for reducing health insurance costs for businesses. In...
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