If they’re not healthy—fine them

Everybody's talking about the bold move at an Indianapolis-based hospital to reduce its healthcare costs. Next year Clarian Hospital in Indianapolis will begin charging employees who don’t meet minimum standards in five areas of health: body mass index, cholesterol, blood glucose, blood pressure and non use of tobacco.

The fees will be minimal at first—only $5 deducted from each paycheck per “infraction,”— but will rise to $30 every two weeks in 2009. Company-sponsored screening will also be required for all employees.

Employees must show that they are working to decrease a specific health risk to avoid the fine. Clarian, which operates five hospitals in the Midwest, is the first major employer to take advantage of changes in federal rules that went into effect in July of this year. The rules do not allow a business to discriminate against any of its employees by cutting health care benefits, but it is legal to use financial incentives to encourage healthier lifestyles.

The interpretation of new HIPAA (privacy act) regulations to allow this type of a financial penalty for lifestyle choices is too lengthy to explain here, but for more information about HIPAA and employer-sponsored wellness programs, try this link.