Wednesday, July 05, 2006

The Carrot and the Stick, So to Speak

Employers seeking to control health care costs increasingly have become more aggressive in efforts to influence employees' non-working behavior. Employers have subsidized health club memberships for years. Newer programs are more aggressive, with some employers now refusing to hire smokers in states that don't have smoker protection laws. (In a recent report, The ACLU's National Work Rights Institute estimates 6,000 employers have such policies). Forbes reports some employers use the "carrot," passing healthcare cost savings on to employees who enroll in weight-loss programs or refrain from smoking. This USA Today article discusses a new twist- employers are replacing vending machine candy with healthier snacks, and subsidizing healthful cafeteria items. What's next, excluding motorcycle riders from insurance coverage for motorcycle-related injuries? (Oh, your slippery slope arguments are wasted on me). Yep. Employers tempted to institute such programs should research whether state "lawful activity" statutes will protect employees' otherwise lawful, off-premises activity.

- DGV