Workplace wellness programs are intended to entice employees to engage in healthy behaviors (e.g., more exercise, less smoking). Not only can such behaviors improve the individual’s health, but employers also hope to save money through lower healthcare costs and less absenteeism. Participation requirements can range from taking a health assessment or joining a workout class to providing detailed health information and submitting to blood tests.

Under the ACA, employers may offer incentives to participate in wellness programs that are worth up to 30% of the cost of health insurance. Given the costs of health insurance, this could result in significant savings for employees. Perhaps not surprisingly, the popularity of these programs has skyrocketed. In 2020, 51% of small firms and 81% of large firms offered some type of wellness program. A small percentage of employers provide benefits or enforce penalties based on health outcomes.

The research on the effectiveness of wellness programs has been inconclusive. One of the first large-scale studies found that while employees self-reported improved health behaviors and benefited from reduced costs, there were no discernible effects on health outcomes, healthcare costs for employers, or absenteeism. That study reviewed initial outcomes after 18 months, which may not be enough time to achieve results.

Another study also found no change in healthcare costs or outcomes. Researchers in that study noted that program participants were employees who were already healthier and motivated, and employers may benefit from keeping those employees in the organization over the long run.