The Departments of Labor (DOL), Health and Human Services (HHS) and the Treasury released FAQ XXV addressing the compliance of wellness programs with the Affordable Care Act.
Highlights of FAQ XXV:
- Compliance with the wellness program regulations under ACA does not determine compliance with other laws nor does it determine the tax treatment of rewards provided by the wellness program.
- A wellness program will comply with the requirement to be “reasonably designed” if it:
has a reasonable chance of improving the health of, or preventing disease in, participating individuals;
- is not overly burdensome;
- is not a subterfuge for discrimination based on a health factor;
- is not highly suspect in the method chosen to promote health or prevent disease; and
- provides a reasonable alternative standard to qualify for the reward for anyone who does not meet the initial standard that is related to a health factor.