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ACA Health Incentives

Meaning

ACA Health Incentives are financial or in-kind rewards offered to employees who participate in workplace wellness programs, specifically those linked to achieving certain health outcomes. These incentives, or conversely penalties, are governed by the Affordable Care Act’s nondiscrimination rules to ensure fairness. They aim to motivate individuals toward quantifiable health improvements, such as lower blood pressure or a non-smoking status, which subsequently may reduce healthcare costs. The law specifies distinct maximum reward percentages for health-contingent versus tobacco-cessation programs. Compliance ensures that employers can promote health without illegally discriminating based on a health factor.