Health Incentives

Question

The Michelin Man isn’t exactly known for his svelte figure, but if you work at Michelin North America, you’d better not model your figure after his, or you may end up paying up to $1,000 more per year for health premiums than your leaner-waisted co-workers. In fact, a growing number of firms are either offering incentives for employees to engage in healthier behavior, or imposing penalties for less healthy behavior.

Supporters insist that these policies are the most effective way to encourage employees to proactively manage their own health, but detractors label such policies coercive and invasive. What do you think of companies offering financial incentives or penalties for certain health-related behaviors? Explain your thinking.

Answer 1

Tim,

This is an opinion question, and as such, your opinion is as valid as mine! Therefore I will not give you my own opinion and unduly sway you. :)

Let's just help you start thinking about this question.

If an employer is covering/supplementing an employee's health insurance, it is clearly in the employer's best financial interest that the employees stay as healthy as possible. Therefore, it seems to me that there is no question at all about whether these types of policies are good for the employers- they clearly are!

But are they good for employees and society as a whole?

On the one hand, if such policies truly keep employees healthier, that is good for both the employer and the employee. In fact, it is good for society as a whole. One less heart attack is good for the person who avoided it; it's good for the employer who doesn't have to pay for the hospital stay; and it's great for the person's loved ones! Less widows/widowers/orphans is always a good thing!

On the other hand, such policies can be seen as terribly invasive and judgmental and unfair. Depending on a person's genetics/race/age/relationship status, it can be harder to meet certain standards of health. For example, Asians are more prone than Caucasians to diabetes. If passing a blood sugar test was suddenly going to be rewarded in the work force, could that end up being unfair to Asians?

Women who have borne children might have a harder time maintaining a slim waist than a man who has obviously not gone through childbirth. If we started measuring employees' waist lines, could that end up being unfair?

And regardless of all of this, does an employer have a right to know our blood sugar level and our waist measures?

Some might say: No! That's private!

Others might say: Well the employer is partially paying for the health insurance so...

As for me, I can only say that these are interesting things for YOU to further ponder!

Hope this helps! :)