HealthFinanceNews.com » Looming legislation on wellness tax credits

Looming legislation on wellness tax credits

May 19, 2008 by Bill Meltzer
Posted in: Chronic health conditions, Consumer-driven health care, Cutting costs, In this week's e-newsletter, Latest News & Views, Wellness programs

In the near future, the federal government may offer help to employers looking to start a wellness program. The help would take the form of tax breaks to offset program costs.

A current U.S. Senate bill would give employers a substantial tax break for starting wellness programs. Dubbed the Healthy Workforce Act, it calls for an employer tax credit of up to $200 per employee enrolled in a newly created wellness program.

For larger firms, there is the $200 credit for the first 200 employees and up to $100 per employee thereafter. To qualify for the full credit, your wellness program would have to feature:

  • health risk assessments
  • employee education drives (e.g., targeted mailings, online tools)
  • behavior change programs (e.g., smoking cessation, weight management, health coaches), and
  • “meaningful” participation incentives (e.g., lower co-pays).

Qualified employers would be able to claim the tax credit for up to 10 years after starting a wellness program.

The bill has enjoyed bipartisan support, but like many things in Washington, the parties disagree over how to fund the cost of the tax credit. As a result, it has been bogged down in committee.

If and when the bill is ratified, employers could claim the federal tax credit the following year.

One Response to “Looming legislation on wellness tax credits”

  1. Linda Carr Says:

    THis news is great! We have had a Wellness Program in place for our employees now for three years. We received the National Wellworkplace Gold Award for our efforts last year. It would be so nice to reward our employees efforts with a credit such as this. Thank you for the information.

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