On December 20, 2017, the U.S. District Court for the District of Columbia vacated key provisions of the EEOC’s final rules for employer-sponsored wellness plans. Primarily, these provisions allow employers to offer wellness incentives of up to 30 percent of the cost of health plan coverage.
To prevent immediate disruption to employers, the court stayed its ruling until January 1, 2019.
This new ruling has certainly created uncertainty for employers regarding the future of permissible incentive limits for voluntary wellness programs. While it is possible that the EEOC will issue new wellness rules prior to 2019, employers should be careful about structuring incentives for wellness programs that ask for health information or involve medical exams.
CBG Benefits will continue to monitor for any and all future developments.
In the meantime, all clients are encouraged to log-in to the CBGconnect portal and download our detailed Compliance Bulletin about this recent ruling.