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Health Outcome Contingent Programs

Meaning

Health outcome contingent programs are wellness initiatives that tie financial incentives or penalties directly to an individual achieving a specific, measurable physiological or biometric result, rather than merely participating in an activity. In the hormonal health sphere, this could involve programs rewarding employees for achieving a target blood pressure, a specified body mass index, or a normalized blood glucose or cholesterol level, all of which are influenced by endocrine function. These programs face intense regulatory scrutiny under HIPAA and the ADA to ensure they are not discriminatory and provide a genuinely reasonable alternative for individuals with underlying medical conditions. Their structure must carefully balance measurable health improvement with legal compliance.