Active Living Program News


Proposed Healthy Workforce Act to Offer Tax Credits for Employee Wellness Programs

Legislation introduced by Senator Tom Harkin (D-IA) and Senator Gordon Smith (R-OR) offers tax relief to employers who spend at least $400 per employee to offer approved health promotion programs. If the bill passes, businesses would receive a tax credit of up to $200 per employee for the first 200 employees, and $100 per employee for remaining employees. Because the bill states that approved programs must “. . . use practices that are consistent with evidence-based research and best practice strategies . . . ,” Active Living Every Day and Healthy Eating Every Day’s solid research base makes them natural choices for employers to offer and take advantage of the tax breaks if the bill goes into effect.

Employee health care costs continue to rise each year, causing employers to look for proven, efficient ways to help employees reduce risks and lead healthy lifestyles. The Centers for Disease Control and Prevention (CDC) reports that obesity cost the nation an estimated $117 billion in 2000, and independent researchers estimate that direct medical costs related to physical inactivity costs are about $76 billion. Employers hoping to curb—and perhaps even reduce—their portion of these costs need to address these leading risk factors and engage employees in taking responsibility for their health.

The Department of Health and Human Services, working closely with the CDC, will provide oversight for the new initiative if it is approved. All employer programs must meet the following requirements in order to qualify for the tax credits:

  • Include at least three of the following four components: health awareness, behavior change, employee engagement, and supportive environments
  • Use practices that are consistent with evidence-based research and best practice strategies
  • Focus on employee populations with disproportionate health burdens, be culturally competent, and meet employees’ health literacy needs
  • Offer all programs to all employees who work at least 25 hours per week

The Secretary of the Treasury and the CDC will also be tasked with developing an outreach program to make employers aware of the tax credits and educating employers on developing effective programs and measuring success.

Employers and health promotion professionals who support this bill should contact their state senators and encourage them to support this bill (the Healthy Workforce Act of 2007). For more information, visit harkin.senate.gov.

To learn more about Active Living Every Day and Healthy Eating Every Day, visit www.ActiveLiving.info or call 800-747-4457.

Sources

American College of Sports Medicine. June 1, 2007. Physical inactivity and obesity translates into economic impact. www.acsm.org. Accessed August 13, 2007.

Health Promotion Advocates. Fact sheet Healthy Workforce Act. www.healthpromotionadvocates.org/FactSheetHealthyWorkforceAct Accessed August 13, 2007.

Health Promotion Advocates. Healthy Workforce Act. www.healthpromotionadvocates.org/HealthyWorkforceAct. Accessed August 13, 2007.

Workforce Management. July 9, 2007. Harkin Bill would provide incentives for wellness programs. www.workforce.com. Accessed August 13, 2007.



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