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Does motivating employees to lose weight with cash work to contain health care costs?

2009 October 14

Knowledge @ Wharton published an article last week about a company that is avoiding rising health insurance premiums by creating incentives for employees to lose weight.

They use a BMI of 30 as the discriminating factor between employees that pay a lower insurance premium and a higher insurance premium, and incentivize employees to make progress during the year even if they can’t get all the way below 30.

I know some will take issue with BMI being used as the measurement; others point to the host of factors largely outside of a person’s control that contribute to obesity; still others might argue about unfairness – the host of behaviors individuals can engage in that contribute to poor health and rising costs (smoking, excessive alcohol, etc) that are not singled out for higher premiums. But no one can disagree that obesity is a big problem not just for the health care system, but for the health of Americans.

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  1. medicaltranscription permalink
    December 8, 2009

    thats great you have encourage an employees like this to reduce the obesity peoples

  2. medicaltranscription permalink
    December 8, 2009

    thats great you have encourage an employees like this to reduce the obesity peoples

  3. medicaltranscription permalink
    January 7, 2010

    S some time it works well. There will be a benefit from the employees. Once they get reduced the weight people will start every day with no frustration and all.

  4. March 10, 2010

    I think this is just the start, other factors such as smoking and alcohol intake, as mentioned, will be taken into account in the future. It's just how it is going to be.
    Watch out, a fat tax is on the way (and sadly it won't be applied to the fat cats!).

  5. changpeter1 permalink
    April 22, 2010

    This is definitely a good post. It's actually very interesting and amusing. While I was checking out that article on the company encouraging their employees to lose weight, I was actually smiling when I read that the company offers two great benefits for people who undergo the plan to lose weight. The benefits? A discount on the health insurance and also a check given by the company. Both ways, they win. Great post!

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