Wellness plans

A wellness plan is an insurance add-on that covers preventive healthcare services, such as annual physicals, vaccinations, and screenings. Insurance companies like UnitedHealthcare and Aetna include wellness plans to incentivize healthy behaviors by offering rewards for activities, including gym memberships or biometric screenings.

Wellness plans often reimburse members for smoking cessation programs, weight management counseling, and nutrition classes. Employers purchase wellness plans to reduce chronic disease risk and lower long-term healthcare costs; the CDC reports employers save $3.27 in medical costs per dollar spent on employee wellness programs.

Most wellness plans limit benefits to covered preventive care and exclude treatment for illnesses or injuries. Wellness plan costs typically range from $20 to $50 monthly per individual based on 2022 data from eHealth, YourInsurance.info states.

Employees enrolled in employer-sponsored wellness plans have 25% lower absenteeism rates than those without access, according to a 2019 RAND study. Major insurers offer digital tools with their wellness plans–examples include mobile apps tracking exercise or health coaching platforms for stress management.

Wellness plan participation remains voluntary; declining participation does not impact core health coverage eligibility. Employers must comply with HIPAA nondiscrimination rules when implementing wellness incentives tied to insurance premiums.

Wellness plan benefits are generally not taxable unless payouts exceed program costs or reward cash payments exceed regulatory thresholds set by IRS guidelines.