Employers have offered wellness incentive programs for a number of years, usually giving rewards to participants for meeting certain health-related goals, such as losing weight, getting flu shots or meeting health requirements.

In order to motivate healthy behavior, employers have shifted incentives to insurance discounts or penalties which can add up to hundreds of dollars. The occurrence of penalties being used has increased in recent years. A 2009 survey of 500 companies found that 8 percent used financial penalties. By 2012, that number had risen to 20 percent.

Studies estimate the return on investment for workplace wellness programs ranges from $3 to $6 in savings for every $1 invested, generally after two or more years of implementation. These savings result from lower use of health care services, reduced absenteeism, reduced workers’ compensation and disability claims. (Hewitt Associates, “Wellness and Beyond: Employers Examine Ways to Improve Employee Health and Productivity and Reduce Costs,” August 2008.) 

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