Reintroduction of Healthy Workforce Act Applauded

April  9, 2009,  ALPHARETTA, GA—A fitting precursor to the National Workplace Wellness Week April 5-11, 2009 was the reintroduction of the Healthy Workforce Act on  April 2 by Senators Harkin & Cornyn and Reps. Blumenauer and Bono Mack, announced SBS, an Alpharetta based employee benefits broker.  Under the act, a tax credit will be available to all employers, including for profit, not for profit and state and local governments, for 50% of the cost of a qualified employer health promotion program. The credit can be up to $200/employee for the first 200 employees and $100/employee for remaining employees.

The tax credit is to be paid through income tax for profit companies and payroll tax refund for local governments, tax-exempt not-for-profit organizations, sub chapter S corporations and employers who did not pay income taxes because they are not earning a profit. Employers with existing programs can receive the tax credit for up to three years and employers who do not have programs can receive the tax credit for up to 10 years. Employers who enhance existing programs to meet the qualifying criteria may be eligible for additional years of tax credits.  Even employers receiving comprehensive health promotion programs through their health plan, can receive a tax credit for the portion of health plan fees that cover the cost of the program.

The Secretary of HHS, in conjunction with the Centers for Disease Control and Prevention (CDC), will develop simple standards to determine qualifying criteria but all programs must have the following specific features: 1) Include at least three of the following four components: health awareness, behavior change, employee engagement and supportive environments. 2) Use practices that are consistent with evidence based research and best practices strategies. 3) Focus on employee populations with disproportionate health burdens, and be culturally competent and meet employee’s health literacy needs. 4) Offer all programs to all employees who work at least 25 hours per week.

Dr. David Rearick, Medical Director and Stephen Cherniak, Wellness Director of SBS explained why this is so important.  “Today, US employers find they are at a competitive disadvantage globally as the costs of providing healthcare benefits often outstrips profits,” they said.  Even the federal government struggles to cover the medical costs of its own employees. If current trends continue, Medicare could be insolvent in a decade and Medicaid is already the number one cost for most states. At the root of the problem are chronic diseases, like cancer, hypertension, diabetes, and heart disease which account for 75% of medical costs, or at least $1.8 billion/year. Lifestyle behaviors like tobacco use, insufficient physical activity and poor nutrition cause 75% of chronic disease. Research has shown that well-designed health promotion programs not only improve health and reduce chronic disease, they often pay for themselves through medical care costs savings that exceed program costs.

In addition, they often produce even greater savings by reducing absenteeism and enhancing productivity. The workplace is the most cost-effective setting to improve people’s health because people spend so much of their waking time at work, economies of scale and quality controls can be achieved, and employers will pay most of the program costs. This tax credit will stimulate investments in workplace health promotion programs by health plans and by employers, especially small employers who are not self insured and thus do not capture medical cost reductions that occur when health improves and medical costs drop. This legislation is expected to engage 28 million employees in 76 thousand workplaces in organized efforts to improve their health for the first time.

About SBS

SBS is an Alpharetta based employee benefits broker offering employers a comprehensive approach to controlling the spiraling costs of benefits.  Unlike traditional brokers, SBS understands the costs drivers for benefits and works with clients to lower costs using technology, innovative programs and on-site expertise.  For more information go to www.sbs-benefits.com or call 678.624.9906.

###

Media Contact:
Marti Breen
Clickgraphix
mbreen@clickgraphix.com
404 815 7222 v
404 219 5699 c