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HIPAA Wellness Incentive

Meaning

A HIPAA Wellness Incentive refers to a financial reward or penalty offered to an employee through an employer-sponsored health plan that is structured in full compliance with the non-discrimination provisions of the Health Insurance Portability and Accountability Act of 1996. These incentives are specifically designed to encourage participation in health-promoting activities or the achievement of health-related standards, such as maintaining optimal hormonal or metabolic markers. The defining characteristic is the strict adherence to HIPAA’s rules regarding reasonable design, uniform availability, and the provision of a reasonable alternative standard for health-contingent rewards.