THE GLOBALFIT WORKSITE WELLNESS SUMMIT
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1 THE GLOBALFIT WORKSITE WELLNESS SUMMIT Legal Implications of Corporate Wellness Programs May 9, 2009 Mark Blondman, Partner, Blank Rome LLP 600 New Hampshire Avenue, NW Washington, D.C
2 Laws Impacting Corporate Wellness Programs HIPAA ADA ADEA State Laws 2
3 Corporate Wellness Activities Health Assessment Tests Behavior Modification Programs Disease Management Programs Participation Incentives Penalties 3
4 The First Thing We do, Let s Kill All the Lawyers Shakespeare Henry VI 4
5 HIPAA HIPAA Prohibits discrimination in health care coverage based on health factors 5
6 HIPAA Non-Discrimination Rules General Rule: Wellness programs which require satisfaction of health-related l t factor must meet five point non- discrimination i i testt 6
7 HIPAA Non-Discrimination Rules A. Program discount may not exceed 20% of cost of employee coverage under employer's health plan 7
8 HIPAA Non-Discrimination Rules B. Program must be reasonably designed to promote health or prevent disease 8
9 HIPAA Non-Discrimination Rules C. Program must provide eligible individuals id with opportunity to qualify for the discount at least once per year 9
10 HIPAA Non-Discrimination Rules D. Program must offer reasonable alternative ti standards d to individuals id for whom it is medically inadvisable or unreasonable difficult to obtain the stated goal 10
11 HIPAA Non-Discrimination Rules E. Program sponsor must publicize the availability of alternative ti standards d in all program materials that describe the terms of the program 11
12 HIPAA Non-Discrimination Rules Exception to Non-Discrimination Rules Wellness Programs that t reward participation if they are made available to all similarly il l situated t individuals id 12
13 The Americans With Disabilities Act (ADA) Prohibits employment-based discrimination i i against qualified individuals with a disability 13
14 ADA To ensure compliance with ADA, Wellness Program must: Assure that participation in the program is voluntary; Ensure that information gathered in conjunction with the program is retained using ADA confidentiality measures; and Be implemented in a way that information gathered is not used to discriminate against employees 14
15 ADA What is voluntary? EEOC: Wellness Program that is structured in a way that employees are neither required to participate nor be penalized for choosing not to participate 15
16 ADA Medical inquiries The line between permissible and impermissible medical inquiries 16
17 ADA Reasonable accommodation obligation Does HIPAA-required offering of alternative method of participating in Wellness Program constitute interactive process requirement under ADA 17
18 Age Discrimination in Employment Act (ADEA) Prohibits discrimination against applicants and employees on the basis of compensation, terms, conditions or privileges il of employment because of such individual s age Disparate Treatment v. Disparate Impact Claims 18
19 ADEA Can otherwise bona fide Wellness Program that t provides for a premium discount for achieving a certain goal, e.g., bone density or cholesterol l level, l which is harder to achieve for older workers, be challenged as having a disparate impact? 19
20 State Lifestyle Discrimination Laws Many states have laws that prohibit discrimination i i against an individual id who engages in lawful activities away from the employer s premises Smokers Overweight workers Refusal to participate in Wellness Program could loss of incentive violate state law? 20
21 SUMMARY Much Ado About Much 21
22 Prepared for By Mark Blondman, Partner, Blank Rome LLP 600 New Hampshire Avenue, NW Washington, D.C
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