Senator Ensign Wins Passage Of Landmark Wellness Provision

Bipartisan amendment will incentivize Americans to participate in healthy behaviors

September 30, 2009 -- Washington, D.C. – Senators John Ensign (R-NV) and Tom Carper (D-DE), members of the Senate Finance Committee, today won strong support from both sides of the aisle for an amendment to the Senate Finance Committee’s healthcare reform bill that will incentivize Americans to lead healthy lifestyles in order to lower their overall healthcare costs. The amendment passed with overwhelming support from both parties with a vote of 18-4.

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“Weight gain and unhealthy lifestyles that focus on smoking and lack of exercise have sky-rocketed our healthcare costs. These costs could be lowered by focusing on what makes us healthy - through weight loss programs, smoking cessation and preventive care. Voluntary employee participation in these areas should naturally be reflected in lower healthcare costs,” Ensign said. “My amendment would guarantee that the incentive is strong enough for Americans to want to participate. This isn’t just about offering financial incentives; this is about making Americans healthier.”

Under current Health Insurance Portability and Accountability Act (HIPAA) wellness program regulations, health plans can offer financial rewards to individuals based on achieving a certain health goal only if certain criteria are met. The current reward threshold is limited to less than 20% of the total cost of the employee’s coverage. The Ensign-Carper amendment will increase the existing reward to 30% and give secretarial discretion to increase the reward to 50%.

The Ensign-Carper amendment will also provide waivers to participants who cannot meet the applied standard due to a medical condition.

The amendment could increase savings to the healthcare system over the long-term by incentivizing healthier behaviors and putting less of a strain on our healthcare system.

Source: Senator John Ensign