According to a press release, the standard coverage will be the same for all employees; however, those who participate in the required wellness program and meet certain criteria will get the reductions. Savings for employers could reach 6% of their total health insurance costs for those implementing the new benefit program.
All employees automatically receive savings on deductibles and co-payments for the first three months of coverage, during which time each covered employee and his or her covered spouse/partner must complete a health risk assessment and wellness screening in order to continue receiving the savings.
Principal Wellness Company will then evaluate the results of the screenings against set criteria and employees who meet the minimum score will continue to receive the savings. However, those who do meet the requirement will be given options for making health improvements to receive the same savings and will also have the opportunity for personalized consulting from a health coach.
“This is not just a reward for the healthy. Those who are not as healthy really benefit most,” said Audrey Vaughn, second vice president of wellness and medical management for The Principal, in the press release. “Not only do they receive a reduced rate if they’re willing to make health improvements, they also get personalized consulting with one of our health coaches to help them achieve a healthier lifestyle.”
The product is currently being offered to fully insured and self-funded groups in Michigan and Iowa.