In March 2013, CVS announced a new corporate wellness program which posed a choice to employees participating in their health plan: complete a free health screening and wellness review OR pay $600 in additional health insurance premiums each year.
This type of incentive strategy is not uncommon. Many employers offer premium discounts or other incentives to employees who participate in wellness programs. However, CVS’s plan was publicly criticized with concerns over patient privacy. Allegations of corporate coercion dominated the media limelight. Though the plan was offered as a voluntary incentive, public perception viewed the $600 as a penalty rather than a reward.
Controversy aside, one key takeaway remains: employers are serious about cracking down on health costs and they are engaging employees for answers.