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This post from Cathy Kenworthy, Interactive Health CEO, was originally published in LinkedIn here. Please visit the original piece to leave any comment.

Today, December 17 at 3 pm ET, we are presenting a webinar – Create a Wellness Incentive Strategy that Works – for Employee Benefit News and Employee Benefit Adviser. You can register by clicking here.

This webinar and this topic is so timely, given this year and this moment. In 2015, we saw unprecedented regulatory activity in the worksite wellness arena and, as the year unfolded, the outcome is clear: the regulatory environment is one that welcomes worksite wellness programs. While no regulatory framework is perfect, the one that applies to this space is far clearer as the year ends compared to when the year started. And for any who are on the sidelines, and as medical inflation continues to outpace general inflation and as the timeframe for implementation of the Cadillac tax continues to draw nearer, it’s time to suit up and get in the game.

As most benefits specialists and many executives know, several laws exist around health care and workplace wellness, including the Affordable Care Act (ACA), the Health Insurance Portability and Accountability Act (HIPAA), the Americans with Disabilities Act (ADA), and the Genetic Information Nondiscrimination Act (GINA). And because these regulations can overlap, some questions around program requirements have been percolating.

That’s no longer the case.

In October 2015, the EEOC issued proposed regulations that support an employer’s ability to offer incentives based on a spouse’s participation in a wellness program, which would appear to resolve prior EEOC concerns and litigation with regard to spouses providing health information under GINA. The proposed rule set a limit on the level of incentives an employer can offer in exchange for medical data consistent with other regulations governing such information, such as the Affordable Care Act.

While the final and important details are still forthcoming, we have clear direction that is supportive of wellness incentives. And while, of course, your company’s legal counsel should always be consulted when designing a wellness program, we can now state with certainty here the same thing I tell any CEO or benefits specialist who asks:

• There is no need to “wait and see” what the regulatory results might be.
• We have more than enough direction.
• If you’ve been sitting on the workplace wellness fence, now is the time for action.  Truly, among your employees, there are lives to be saved and lives to be improved.

A lot can be learned from the data generated by wellness plans, including key information that can help you better design your company’s health plans and interact as an active partner with carriers and consultants. These data – from potential heart disease factors to diabetes concerns and beyond – are central to making informed decisions about your company’s health strategy. And, for those companies that see what the national trend sees, which is medical inflation continuing to stubbornly outpace general inflation, the data makes all the difference in switching up these two trends.

But to gain this aggregate data, your employees need to be actively involved. From years of working closely with clients, we know what works: Well-designed incentive programs increase participation and lead to engagement, which are required for health improvement.

Now, incentives aren’t necessarily what you think. Too often, I’ve seen firms rely on the obvious – money – as the key or perhaps the only enticement for employees to participate in wellness programs.

We analyzed the data, reviewing our book of business from 2011 to 2014. What we found is that money works… up to a point. Bigger rewards do not necessarily lead to bigger outcomes. In fact, smaller incentives paired with an effective communication strategy and supportive culture can generate almost as much impact as larger incentives. Participation-based incentives also clearly drive positive impacts.

In fact, based on our internal research, we’ll talk tomorrow about all the elements of an effective incentive strategy. Register right now to hear from Jane Ruppert, Vice President of Health Management and Stacey Nevara, who leads Client Services: Click here.

And as always, I’d love to hear from you, as well. What questions or thoughts do you have around launching your workplace wellness program – and developing the best incentive strategy with and for your employees?