Given the huge growth of wellness programs over the last two years, it was inevitable resistance would creep up among watchdog groups. 

In Washington, lobbyists have spearheaded a push for Congress, the DOL and IRS to crack down on “punitive” wellness programs.

Specifically, the groups seek to limit programs in which employees’ share of their health costs are directly tied to their willingness to participate in a wellness program.

HIPAA’s non-discrimination rules prohibit employers from creating negative financial incentives for workers with health risks. 

For instance, you can’t raise someone’s premium share because he or she smokes. What you can do is offer a discount if someone completes a smoking cessation program.

Reason: The law does allow for financial incentives to workers who willingly participate in wellness programs.

The watchdog groups seek greater regulation to make sure incentives and discounts are used only as rewards for healthy behavior, not as a thinly veiled form of discrimination against high-risk employees.