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National Patient Groups Oppose Allowing Employers to Charge Less Health Workers More For Health Care
January 7, 2010
WASHINGTON -- January 7, 2010 -- Three of the nation’s leading patient groups are calling on congressional leaders to ensure that final health care reform legislation promotes evidence-based workplace wellness programs and encourages financial incentives for healthy behaviors that are not tied to insurance premiums.
The American Cancer Society Cancer Action Network (ACS CAN), the American Diabetes Association and the American Heart Association worked with House leaders to develop workplace wellness provisions in the House-passed health reform bill that encourage healthy behaviors but do not penalize less healthy workers with higher premiums and out-of-pocket costs.
In a letter sent to lawmakers last month, the patient groups and more than 100 other organizations expressed deep concern with language in the Senate-passed bill that allows employers to require employees who don’t meet health targets determined by the company to pay potentially thousands of dollars more for insurance by allowing rewards and penalties equivalent to 30 percent – and potentially 50 percent – of the total cost of an employee’s health coverage. The Senate language does not set evidence-based guidelines for workplace wellness programs. It also would create a pilot program in 10 states to expand the practice to the individual insurance market, which would penalize individuals and families for poor health without a workplace or a wellness program of any kind to try to improve health.
"Workplace wellness programs can effectively improve the health of employees and reduce health care costs for employers, but they should not penalize unhealthy workers by increasing the costs of health care," said chief executive officers John R. Seffrin of ACS CAN and the American Cancer Society, Larry Hausner of the American Diabetes Association and Nancy Brown of the American Heart Association. Each group works extensively with businesses across the country to implement measures that improve employee health without charging unhealthy workers more for health coverage.
"Health care reform is about giving all Americans access to quality, affordable health care, regardless of their health status," said the CEOs. "Penalizing workers who do not meet certain health targets by passing on the cost of higher health care premiums continues the status quo by making health coverage unaffordable for those who need it most."
The House bill establishes a grant program using non-insurance-based financial subsidies and rewards to promote the "use of evidence-based prevention services." It provides grants of up to $50,000 to small employers that offer qualified wellness programs that are "consistent with evidence-based research and best practices" to be certified by the Health and Human Services Secretary, the Labor Secretary and the director of the Centers for Disease Control and Prevention.
The bill prohibits mandatory employee participation and any connection between the financial reward and insurance premiums or cost-sharing. The bill also calls for research and analysis on the efficacy of workplace wellness programs.
The three patient groups joined more than 60 other public health and consumer groups in September to oppose an amendment subsequently adopted by the Senate Finance Committee that would allow employers to charge employees who do not meet a certain health measure as much as 50 percent more for their insurance. This includes the cost paid by both employees and employers for individual or family coverage. Such a plan would shift substantial costs onto the backs of the least healthy workers and open a large back door to discrimination against people with chronic diseases.
The groups worked with House leaders to keep similar language out of the House bill while advocating for the effective, evidence-based workplace programs that are included in the legislation that passed the House on Nov. 7.
Existing regulations allow for charging unhealthy workers up to 20 percent of the total cost of an employee’s health coverage..
For copies of the letters, please contact the organization representatives listed above.
ACS CAN, the nonprofit, nonpartisan advocacy affiliate of the American Cancer Society, supports evidence-based policy and legislative solutions designed to eliminate cancer as a major health problem. ACS CAN works to encourage elected officials and candidates to make cancer a top national priority. ACS CAN gives ordinary people extraordinary power to fight cancer with the training and tools they need to make their voices heard. For more information, visit www.fightcancer.org.
The American Diabetes Association is leading the fight against the deadly consequences of diabetes and fighting for those affected by diabetes. The Association funds research to prevent, cure and manage diabetes; delivers services to hundreds of communities; provides objective and credible information; and gives voice to those denied their rights because of diabetes. Founded in 1940, our mission is to prevent and cure diabetes and to improve the lives of all people affected by diabetes. For more information please call the American Diabetes Association at 1-800-DIABETES (1-800-342-2383) or visit www.diabetes.org. Information from both these sources is available in English and Spanish.
The American Heart Association, founded in 1924, is the nation’s oldest and largest voluntary health organization dedicated to building healthier lives, free of heart disease and stroke. To help prevent, treat and defeat these diseases — America’s No. 1 and No. 3 killers — we fund cutting-edge research, conduct lifesaving public and professional educational programs, and advocate to protect public health. To learn more or join us in helping all Americans, call 1-800-AHA-USA1 or visit americanheart.org.
FOR MORE INFORMATION, CONTACT:
Steven Weiss
Phone: 202-661-5711
Email: [email protected]
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