Wellness Programs

UNDERSTANDING THE WELLNESS PREMIUM INCENTIVE

At Sample Company, we want each employee to realize the power of good health. In 2022 we will continue our partnership with Vitality to provide a comprehensive wellness program integrated with the Sample Company medical plans that will help to achieve our goal of healthier, happier employees.

This unique program helps Sample Company employees achieve individual health and wellness objectives through a customized approach. Using the Vitality interactive website (example.com), you receive your own Personal PathwayTM comprised of health goals and activities.

Employees enrolled in the Sample Company medical plans are each assessed a premium based on the election they make for benefits. If the employee achieves Silver Status by the deadline, he or she will be eligible to receive a Wellness Premium Incentive that reduces his or her premium on a bi-weekly basis with each payroll. If employees do not achieve the required status they will continue to pay the full premium.

Wellness Premium Incentive – Premium Reduction

The amount of your premium reduction is based on the following:

  1. Achievement of Silver Status by the required deadline
  2. The Benefit tier you select for medical benefits, i.e.:
    • Tiers with a spouse, i.e. Employee plus spouse or Employee plus family
    • Tiers without a spouse, i.e. Employee only or Employee plus children

EMPLOYEES ENROLLED IN EITHER THE EMPLOYEE PLUS SPOUSE OR EMPLOYEE PLUS FAMILY CATEGORY

Your spouse is required to participate in the Sample Company Wellness Premium Incentive program, and together your combined points to achieve Silver Status will be 3,500. Both you and your spouse must each complete at least 1,500 of those points. The remaining 500 points can be completed by a combination of both your efforts.

You and your spouse must achieve Silver Status by December 1, 2022 in order to be eligible to receive the Wellness Premium Incentive of $1,800 for 2023.

Employees Enrolled in Employee Only or Employee Plus Children Category

You must achieve Silver Status by earning 2,500 points by December 1, 2021 in order to be eligible to receive the Wellness Premiums incentive of $1,200 for 2022.

WELLNESS PREMIUM INCENTIVE –  CASH AWARD

Gold Status

In addition to offering the Wellness Premium Incentive (premium reduction) of $1,200 or $1,800 per year for 2022, you will also be eligible to receive a taxable cash award of $750 if you and your spouse achieve Gold Status (9,000 Vitality Points), or $500 if you achieve 6,000 points as an Employee only by December 1, 2022. This taxable cash award would be payable on or near the last payroll in December 2022

 

WELLNESS PREMIUM INCENTIVE (VITALITY CREDIT) FOR NEW HIRES

New hires or newly eligible employees enrolled in a medical plan will automatically be provided with the Wellness Premium Incentive (Vitality Credit) until their deadline. New hires will have until the end of the second full quarter after their date of hire to complete the necessary steps to achieve Silver Status and maintain the Wellness Premium Incentive (Vitality Credit).

Special consideration for third and fourth quarter new hires or newly eligible employees: Your deadline to achieve Silver Status to continue receiving the Wellness Premium Incentive (Vitality Credit) is in the following year. Since only 10% of any points earned will be rolled over to the following year, the best strategy is to wait and start accumulating points beginning on January 1, unless you believe you are able to achieve Silver Status by December 31.

For example, John Smith was hired on July 15, 2021, and accumulated 1,900 Vitality Points by December 31, 2021. On January 1, 2022, his Vitality points will be 190 (only 10% of prior years’ points are rolled over). If he does not achieve 2,500 points by March 31, 2022, he will lose his Wellness Premium Incentive (Vitality Credit).

The Wellness Premium Incentive (Vitality Credit) is a calendar year plan that runs from January 1 to December 31, and therefore you must re-earn your Vitality Points each calendar year (Points reset to zero). However, on January 1 of each following year, 10% of your points earned in the previous year will be added to your starting balance of zero as a reward and incentive for the new year.

DEADLINES

  • Current employees must attain Silver Status by December 1 to receive the Vitality Credit for the following year.
  • New hires must attain Silver Status by the deadlines indicated in the below table:

Please refer to the Vitality website or contact Vitality at 800-555-5555 or johndoe@example.com with any questions about the program, including the Vitality points guide and Vitality biometric form.