Defining Different Types of Wellness Programs

1. General educational or participatory & not health-plan related

These programs are optional and educational that provide helpful information to employees. They don't provide any sort of medical care, only information/programs (yoga classes) to help promote healthy lifestyle choices. These types of plans are less likely to be involved with federal employment and benefit laws.

2. Participatory & health plan-related

These programs are once again very optional for employees and rewards are not tied to any sort of results from actually participating. When programs are health plan related, it means they are only available to employees enrolled in the employer's health plan. Now, federal employment and benefits laws apply more to these types of programs with more specific requirements that relate to programs that involve provision of health care.

3. Activity-only & health plan-related

The biggest difference between activity only and participatory are that these programs require individuals to a complete a specific activity in order for them to receive a reward.

4. Outcome-based & health plan-related

The rewards in this case are tied to participation in a health plan. Further, the reward can be based on existing health conditions or results of  a biometric screening. These programs are outcome based and require participants to satisfy a health-related standard in order to receive the reward. Rules for these programs are a lore more severe (especially under HIPPA and PPACA).


Examples:
(+) Employees can receive a reduction in their healthcare plan contribution requirement for completing a health risk assessment.
(-) Smokers can face penalties for participating in wellness programs which will hopefully encourage the user to quit.

The penalty aspect of some of these wellness plans has been criticized heavily, especially by the Equal Employment Opportunity Commission. To avoid this, companies shouldn't require their employees to participate in any sort of program, or penalize employees being a smoker or being "overweight"(Fun Fact Cigna doesn't hire smokers whatsoever).

Source: https://www.ajg.com/media/1274703/designing-a-compliant-wellness-program.pdf