November 12, 2007

Welcome to Benefits Challenge. Benefits Solved.

Here is a free, fun and intriguing way to test your knowledge. Each edition of the News & Review will include a test on topics such as FMLA, COBRA, FSA, HRA, HSA along with others various topics.

Question: An employer wants to offer a wellness program that has a condition for obtaining a reward based on satisfying a standard that is related to a health factor. Which of the following is NOT a requirement of such a program?

Your Response: CORRECT

Explanation: While the Final HIPAA Nondiscrimination Regulations (effective July 1, 2007) do require a reasonable alternative standard for performance-based wellness incentives, they do not require employers to articulate a specific standard prior to the need for the standard existing. Instead, employers can include the following statement in their communication materials: “If it is unreasonably difficult due to a health factor for you to meet the requirements under this program (or if it is medically inadvisable for you to attempt to meet the requirements of this program), we will make available a reasonable alternative standard for you to avoid this surcharge.” You can find these requirements in 29 CFR 54.9802-1(f)(2).