Journal Article

Redesigning Employee Health Incentives — Lessons from Behavioral Economics

Galvin, Robert, Volpp, Kevin G, Asch, David A, Loewenstein, George

2011

Overview

Redesigning Employee Health Incentives Starting in 2014, employers will be able to use a portion of employees' health insurance premiums to provide outcome-based wellness incentives to try to cut health care costs. But evidence that such programs work is scant. Lessons from behavioral economics might help. Buried as Section 2705 of the Patient Protection and Affordable Care Act (ACA) is a provision of potentially momentous importance. Beginning in 2014, employers may use up to 30% of the total amount of employees' health insurance premiums (50% at the discretion of the secretary of health and human services) to provide outcome-based wellness incentives. Such rewards can “be in the form of a discount or rebate of a premium or contribution, a waiver of all or part of a cost-sharing mechanism (such as deductibles, copayments, or coinsurance), the absence of a surcharge, or the value of a benefit that . . .

• Publisher: Massachusetts Medical Society
• Subject: Decision Making / Economics / Employee Incentive Plans / Employees / Employers / Health Behavior / Health Benefit Plans, Employee - economics / Health Benefit Plans, Employee - legislation & jurisprudence / Health care policy / Health insurance / Health Promotion - methods / Humans / Insurance premiums / Motivation / Occupational Health Services / Patient Protection and Affordable Care Act / United States