Monday, September 10, 2007

BUSINESSES PROVIDE INCENTIVES FOR WORKERS TO REDUCE HEALTH RISKS

From AP via MSNBC:

First they tried nudging. Now companies are penalizing workers who have high health risks such as obesity and high blood pressure or cholesterol as insurance costs climb.

A small number of companies have linked health factors to what employees pay for benefits, but the practice is expected to grow now that some federal rules have been finalized, spelling out what’s allowed by law. Employee advocates worry that other anti-discrimination laws such as the Americans with Disabilities Act won’t cover the person who is 20 or 30 pounds overweight.

The businesses are deducting from employees’ paychecks, adding insurance surcharges or offering insurance discounts or rebates only to low-risk workers.

“Employers know they have to do something,” said Garry Mathiason, a senior partner at the national employment and labor law firm Littler Mendelson, based in Boston. “I believe that in just the next two years more employers will turn to penalties to change employee behavior.”

A 2003-2004 National Health and Nutrition Examination Survey showed about two-thirds of adults in the United States were overweight and almost one-third obese. A U.S. surgeon general’s report said health care costs of obesity totaled more than $117 billion in 2000.

1 comment:

thomas shockey said...

I agree that we are responsible for our personal health.However,we should also look to lower health care cost as part of the solution. This sounds a little one sided.
I interviewed at Blue Cross this year and I notice that everyone on staff was over weight.These laws should apply to all workers,public and private.$117 billion? does anyone see an opportunity here?