There are two types of worksite wellness programs — health-contingent and participatory — that help employers promote healthier lifestyles to their employees.

Health-contingent. In this program, employees are typically required to meet a health standard set by their employer to receive a reward. Employers may choose to grant a reward of up to 30% of the total cost of coverage. For example: Employees may be required to take a health risk assessment to determine their health status. Factors to determine a healthy or at-risk status may include cholesterol, blood pressure and Body Mass Index levels. Healthy employees may receive a reward (such as a premium discount) of up to 30% of the cost of coverage. High-risk employees may be required to improve their health status to receive the same reward as healthy employees. The maximum reward for programs designed to prevent or reduce tobacco use is an additional 20%.

Participatory. In this wellness program, rewards are based on participation (not health standards). The wellness program should be available to everyone without discriminating against certain health plan participants.