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Health Contingent Incentive Structure

Meaning

A Health Contingent Incentive Structure is a component of a workplace wellness program that offers rewards, such as premium discounts or financial bonuses, to employees who meet specific health-related criteria or complete a particular activity. These structures are typically categorized as either activity-only or outcome-based, often focusing on metrics relevant to hormonal health like body mass index, cholesterol levels, or blood pressure. The legal context mandates that such incentives must be reasonably designed to promote health and must offer a reasonable alternative standard for individuals unable to meet the initial standard due to a medical condition. This design ensures both engagement and regulatory fairness.