USA Today Examines Michigan HMO's Employer, Employee Discounts For Wellness Program

Main Category: Health Insurance / Medical Insurance
Article Date: 17 Jul 2006 - 17:00 PDT

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USA Today on Thursday examined a Michigan HMO that is offering a new plan that includes discounts for employees who pledge to maintain a healthy lifestyle. The program by Blue Care Network, part of Blue Cross Blue Shield of Michigan, offers an average 10% discount on premiums for employers that offer the plan and lower copayments and deductibles for their employees if they exercise, quit smoking and take medicine as prescribed. Those employees who do not follow their doctors' recommendations or who discontinue participation in the program could see a rise in their copays and prescription drug costs. According to USA Today, Blue Care's effort is part of a national trend of HMOs offering discounts for workers at small companies who pledge to pursue healthy lifestyles. Blue Care's plan "may be the most far-reaching such effort aimed at smaller employers," but other health plans also are "embrac[ing] 'consumerism,'" in health care, USA Today reports. For example, Washington State Premera Blue Cross in June began offering midsize companies two free years of health risk management and health "coaching," and Massachusetts in April joined other states in altering insurance laws to allow wellness discounts for small companies. Meanwhile, many employers are offering incentives for workers who participate in wellness programs. Peter Lee of the Pacific Business Group on Health says, "I'm seeing increasing interest in employers recognizing their premium costs are often driven by the lifestyle choices of some of their employees, and that's causing an unfair burden on other employees" (Appleby, USA Today, 7/13).

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