Insurance Companies to Offer Incentives Encouraging Good Health

SPRINGFIELD – In a groundbreaking commitment to meaningful health care reform, the Illinois House of Representatives approved legislation on Wednesday sponsored by State Rep. Sidney Mathias (R-Buffalo Grove) paving the way for insurance companies to offer incentives for wellness coverage to clients. The legislation, Senate Bill 1877 secured unanimous support from the House and has returned to the Senate for concurrence before being sent to the Governor for approval.

“Wellness is the key to the development of a healthier society,” Rep. Mathias said. “We can dramatically reduce health care costs long-term by focusing on wellness and prevention rather than treatment after people have become ill. Responsible action calls for a preventative health care policy that stresses wellness for people of all ages.”

Senate Bill 1877 provides that insurance policies or plans that provide coverage for hospital or medical treatment on an expense incurred basis may offer wellness coverage to its participants. Wellness coverage means health care coverage with the primary purpose to engage and motivate those who are insured through financial incentives, health education, counseling and self-management skills, identification of modifiable health risks and other activities to influence heath behavior changes.

Incentives that may be offered for participation in a health behavior wellness or improvement program approved or offered by the insurer or managed care plan include a reduction in premiums, co-payments, coinsurance or deductibles, as well as reduced medical and prescription drug costs, equipment, or any combination of these incentives.

For example, an employee that quits smoking through participation in a smoking cessation program offered by an insurer may receive a premium reduction or other financial reward. If signed by the Governor, the bill would take effect on January 1, 2010.

# # #