Benefits Challenge

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?

• The reward must not exceed 20 percent of the cost of employee-only coverage under the group health plan.
• The program must be reasonably designed to promote health or prevent disease.
• A specific and firm reasonable alternative standard must be established and communicated.
• Participants must have the opportunity to qualify for the reward annually.