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Achieve Balance
Between Working & Working-out™ |
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NEWS |
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Lawmakers Reintroduce Bill to Encourage Employee
Wellness Programs |
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Apr 6, 2009
http://healthpromotionadvocates.org/legislative_priorities.htm |
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Sens. Tom Harkin (D-Iowa) and John Cornyn (R-Texas)
and Reps. Earl Blumenauer (D-Ore.) and Mary Bono
Mack (R-Calif.) are sponsoring the reintroduction of
the Healthy Workforce Act, which encourages
businesses to provide healthier work environments
for employees, AHA News Now reports. Originally
introduced in 2007, the bill provides tax incentives
to businesses that offer and promote comprehensive
wellness programs for their employees. To receive
the tax credit, wellness plans must include at least
three of four components, including health risk
assessment programs; behavioral change initiatives
on topics such as obesity, tobacco use and fitness;
on-site policies that promote health, such as a
smoke-free workplace and nutritious food offerings;
and incentives for employee participation in
wellness programs. The bill was reintroduced and
endorsed at the launch of the U.S. Workplace
Wellness Alliance, a coalition of more than 75
businesses including the American Hospital
Association, the American Heart Association and the
National Business Coalition on Health (AHA News Now,
4/2/09; Office of Rep. Earl Blumenauer release,
4/2/09; Library of Congress Web site,
7/9/07).http://www.rwjf.org/publichealth/digest.jsp?id=10185 |
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Tax Credit for Comprehensive Workplace Health
Promotion Programs. |
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A tax credit will be available to all employers,
including for profit, not for profit and state and
local governments, for 50% of the cost of a
qualified employer health promotion program. The
credit can be up to $200/employee for the first 200
employees and $100/employee for remaining employees.
The tax credit is paid through income tax for profit
companies and payroll tax refund for local
governments, tax-exempt not-for-profit
organizations, sub chapter S corporations and
employers who did not pay income taxes because they
are not earning a profit. Employers with existing
programs can receive the tax credit for up to three
years and employers who do not have programs can
receive the tax credit for up to 10 years. Employers
who enhance existing programs to meet the qualifying
criteria may be eligible for additional years of tax
credits. Employers, who receive comprehensive health
promotion programs through their health plan, can
receive a tax credit for the portion of health plan
fees that cover the cost of the program. |
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The Secretary of HHS, in conjunction with the
Centers for Disease Control and Prevention (CDC),
will develop simple standards to determine
qualifying criteria but all programs must have the
following specific features: 1). Include at least
three of the following four components: health
awareness, behavior change, employee engagement and
supportive environments. 2). Use practices that are
consistent with evidence based research and best
practices strategies. 3). Focus on employee
populations with disproportionate health burdens,
and be culturally competent and meet employee's
health literacy needs. 4). Offer all pro-grams to
all employees who work at least 25 hours per week.
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Educational Campaign
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The Department of the Treasury, in conjunction with
CDC and business groups, will launch a campaign to
promote the benefits of workplace health promotion
programs and the availability of the tax credit.
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Why is this Important?
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Many US employers spend more on medical care than
they earn in profits. This makes it difficult for
them to compete in a global market place, and is
threatening the survival of some companies. The
federal government struggles to cover the medical
costs of its own employees. Medicare will be
insolvent in a decade and Medicaid is the number one
cost for most states. Chronic diseases, including
cancer, hypertension, diabetes, and heart disease
are responsible for 75% of medical costs, at least
$1.8 billion/year. Lifestyle behaviors like tobacco
use, insufficient physical activity and poor
nutrition cause 75% of chronic disease. Research has
shown that well-designed health promotion programs
not only improve health and reduce chronic disease;
they often pay for themselves through medical care
costs savings that exceed program costs. They often
produce even greater savings by reducing absenteeism
and enhancing productivity.
The workplace is the most cost-effective setting to
improve people's health because people spend so much
of their waking time at work, economies of scale and
quality controls can be achieved, and employers will
pay most of the program costs. This tax credit will
stimulate investments in workplace health promotion
programs by health plans and by employers,
especially small employers who are not self insured
and thus do not capture medical cost reductions that
occur when health improves and medical costs drop.
This legislation is expected to engage 28 million
employees in 76 thousand workplaces in organized
efforts to improve their health for the first time.
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