Wellness Programs

The federal government is making $200 million available to small businesses to implement wellness programs as part of the Patient Protection and Affordable Care Act (PPACA). The goal is to:

  • Reduce long-term health care costs.
  • Increase productivity.
  • Decrease absenteeism.
  • Promote a healthier lifestyle.

Generally, productivity and work performance are enhanced by employee wellness programs, with benefits to both the employee and the employer. Like many employee benefits, company wellness programs can:

  • Improve workplace morale — Healthier employees are happier employees.
  • Increase loyalty — An employee who believes the employer takes interest in his or her well-being tends to be more loyal to the company.

There are many types of wellness programs as well as various incentives for employees to participate in them. From smoking cessation to weight loss programs, employers have many options to investigate and offer. And now grants can help offset the initial costs of implementing programs, helping employers experience financial benefits sooner.

A well-defined plan for implementing a wellness program includes:

  • Health awareness initiatives (including health education, preventive screenings, and health risk assessments).
  • Efforts to maximize employment engagement and encourage participation.
  • Initiatives to change unhealthy behaviors and lifestyle choices (including counseling, seminars, online programs, and self-help materials).
  • Supportive environment efforts (including workplace policies to encourage healthy lifestyles, healthy eating, increased physical activity, and improved mental health).

There are a finite amount of funds available for this initiative, so there is no guarantee that all applicants will receive funding.

Wellness Program Grant Overview

What is a wellness program?

A wellness program is a coordinated and structured program to proactively improve employees' physical and mental health. Wellness programs have been shown to reduce health care costs and absenteeism, resulting in improved productivity.

When?

The program begins in 2011 and will apply only to programs implemented after March 23, 2010.

Which employers can participate?

Employers with less than 100 employees who work 25 hours per week or more and did not have a workplace wellness program as of March 23, 2010, are eligible.

How is the program funded?

$200 million in federal funds administered by the Department of Health and Human Services (HHS) will be available in grants beginning in 2011 for up to five years.

How does an employer apply?

An employer must apply for a grant through HHS on the department's Website: www.grants.gov. Please note that the application process has not yet started.

Wellness and Prevention programs include:

  • Nutrition
  • Smoking cessation
  • Physical fitness
  • Stress management
  • Weight management
  • Heart disease prevention
  • Healthy lifestyle support
  • Diabetes prevention

Paychex Insurance Agency Can Help

Paychex Insurance Agency is a full service insurance agency that has taken a leadership role in transforming how businesses like yours adapt to and benefit from the rapidly changing insurance industry. We're ready to offer information and assistance to help you navigate the recent Health Care Reform initiatives.

We can help:

  • Educate you on wellness programs.
  • Processing of financial rewards through payroll (if applicable).
  • Provide resources to help you explain the changes to your employees.
  • Follow the latest regulations to keep you informed about any legislative changes that affect you and your business.

Health Care Reform Updates

With access to legislative and regulatory specialists in Washington, D.C. and expert, in-house sources of legal and compliance guidance, Paychex Insurance Agency is your source for Health Care Reform knowledge, tools, and resources.

Whether you're looking for a Business Owner Policy, Workers' Compensation insurance or group health and life insurance, Paychex Insurance Agency offers flexible, scalable insurance solutions for you, your business and your employees. To learn more about how we can meet your insurance needs, call 877-393-8868 or have an agent call you.

The Department of Health and Human Services and the Internal Revenue Service (IRS) continue to provide specifics and guidance on the Health Care Reform Act. Paychex will monitor these regulatory developments and provide updates as appropriate.

The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. It is provided for informational purposes only. If you require legal or accounting advice, or need other professional assistance, you should always consult your licensed attorney, accountant, or other federally licensed tax professional to discuss your particular facts, circumstances, and business needs.

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