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The budget-neutral incentive model

As employee healthcare costs continue to rise, budgets are tightening. But employers don't have to struggle to continue offering beneficial wellness offerings. The budget-neutral incentive model uses premium differentials to cover the costs of biometric screenings and other well-being offerings.

The premium differential is forgiven for biometric wellness screening participants, shifting the cost to non-participants, who:

  • Have 30% higher healthcare spend
  • Are 33% more likely to go to the emergency room
  • Are 50% more likely to have an in-patient claim1

Well-being with a budget-neutral incentive model

Financial incentives drive well-being program participation. However, the type and amount of the incentive can vary based on your company culture, changing Equal Employment Opportunity Commission (EEOC) rules, and the types of programs you offer. As employee healthcare costs continue to rise, budgets are tightening. Employers are struggling to continue offering beneficial well-being offerings, let alone provide incentives for participating in them.

Health screenings are uniquely reliant on participation incentives. Those who participate tend to be more health-conscious. When no incentive is used, or inadequate incentives are offered, employers tend to miss potential high-cost claimants, and fail to see the impact of screening on their healthcare spend. In order to gain the insights from screening while maintaining your wellness budget, consider using a budget neutral model. See an example of a budget-neutral incentive model below.

How can I put together a budget neutral incentive model? 

Download our Genius Sheet to see a sample.

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1. Statistics based on 2016 case study of claims for Quest Diagnostics screening participants vs. non-participants.

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