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Health-Contingent Incentive Limits

Meaning

Health-Contingent Incentive Limits are the legally mandated maximum values or caps placed on the financial rewards or penalties that can be offered within a wellness program when those incentives are contingent upon an individual achieving a specific health outcome. These limits are a regulatory mechanism designed to ensure that participation in such programs remains voluntary and that the incentives are not so substantial as to become coercive or discriminatory. The limits are calculated to strike a balance between encouraging participation and protecting vulnerable populations. They are a crucial component of compliance for health-based wellness initiatives.