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Family Coverage Incentive Calculation

Meaning

The Family Coverage Incentive Calculation is the regulatory method used to determine the maximum permissible financial incentive offered within a wellness program for employees who enroll in a health plan that covers their entire family. This calculation is a critical compliance metric, allowing for a higher maximum incentive than the self-only coverage limit, as it reflects the greater total premium cost of family enrollment. It is essential for employers to correctly calculate this maximum to legally offer rewards for health outcomes achieved by the employee or their covered dependents.