[Congressional Record Volume 161, Number 16 (Friday, January 30, 2015)]
[Senate]
[Page S671]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            MORNING BUSINESS

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   EMPLOYER WELLNESS PROGRAMS: BETTER HEALTH OUTCOMES AND LOWER COSTS

  Mr. ALEXANDER. Madam President, I ask unanimous consent that a copy 
of my remarks at the Senate Health, Education, Labor and Pensions 
Committee hearing yesterday be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

   Employer Wellness Programs: Better Health Outcomes and Lower Costs

       This morning we are holding a hearing entitled ``Employer 
     Wellness Programs: Better Health Outcomes and Lower Costs.''
       Ranking Member Murray and I will each have an opening 
     statement, then we will introduce our panel of witnesses. I 
     ask that each of our witnesses limits their testimony to no 
     more than five minutes. We will conclude the hearing at noon.
       About half of Americans, or 149 million, have health 
     insurance through an employer. One thing we agree upon is 
     that it's a good thing for employers to encourage employees 
     to be healthier. There are a few ways that employers can do 
     this. Offering employees free gym memberships, access to 
     weight loss coaches, and on-site nurses, to name a few. 
     Today, we're going to hear from employers who offer lower 
     cost insurance if their employees lead a healthy lifestyle.
       Obamacare was not a bipartisan law, but it did include a 
     bipartisan provision to strengthen workplace wellness 
     programs. Former Senator Harkin and I worked together on this 
     during the HELP Committee markup of Obamacare. Before 
     Obamacare, employers relied upon a 2006 regulation which 
     empowered them to discount employee premiums up to 20 
     percent.
       Today, employers have certainty of law that they can give 
     their employees up to 30 percent off of their premiums if 
     they make healthy lifestyle choices like maintaining a 
     healthy weight or keeping their cholesterol levels in check. 
     The law also gave the Secretaries of Labor and Health the 
     authority to extend this discount to 50 percent off through 
     regulations. And the Secretaries did just that for tobacco 
     cessation, so companies can also give employees who are 
     smoke-free a 50 percent discount off their premiums.
       But these discount programs aren't a blank check. By law, 
     employers have to meet several conditions. First, they cannot 
     discriminate. Employers must make these programs available to 
     everyone and must provide a reasonable alternative if an 
     employee cannot complete the standard requirement. Second, 
     they have to be designed to promote health. So, your boss 
     can't offer a reward for a better job performance, but she 
     can do so if you stop smoking. Third, everyone should have a 
     chance to qualify at least once a year.
       To get started, employees might simply fill out a 
     questionnaire about themselves and their family's medical 
     history, or undergo a basic health screening to take their 
     weight, temperature, blood pressure, as well as a finger 
     prick test for cholesterol or diabetes. This information 
     provides employees a baseline from which to work with a 
     medical professional to improve.
       Today, we will seek to answer several questions. First, how 
     well are these programs working? A 2014 study conducted for 
     Interactive Health found 85% of 15,550 people surveyed either 
     improved or maintained their level of health risk and 
     companies' health care costs rose 6% more slowly. A September 
     2014 survey by the benefits consulting firm of Towers Watson 
     & Co. found that 18% of employers already use outcomes-based 
     wellness incentives and 48% plan to add one by 2017.
       Next, we want to explore if any of these programs need to 
     be changed. There are a number of laws and regulations on the 
     books governing wellness programs, but do employers have all 
     the tools they need?
       And we want to hear how a disturbing turn of events may 
     affect these programs. Specifically, the action the Equal 
     Employment Opportunity Commission (EEOC) is taking against 
     companies like Honeywell for encouraging employees to lead a 
     healthier lifestyle. I'm concerned the government is 
     encouraging workplace wellness on one hand, and discouraging 
     it on the other.
       There is a great deal of evidence that tells us these 
     programs can make employees healthier and happier at work, 
     and for the investment employers make, they can see lower 
     health care costs.
       Honeywell has a wellness program that is reportedly 
     compliant with Obamacare, provides for reasonable alternative 
     accommodations, and protects patient privacy. And, it's 
     working to improve employee health. 61 percent of Honeywell 
     employees identified with more than one health risk factor 
     eliminated at least one of those risk factors; and 46 percent 
     eliminated all of their risk factors.
       What's wrong with that? Well, the EEOC seemingly believes 
     employers should not reward employees who make healthy 
     lifestyle choices with lower premiums. And in October last 
     year, the general counsel sued to stop Honeywell from doing 
     just that.
       Even the White House has expressed concern regarding the 
     EEOC's actions. In December, when asked about the president's 
     thoughts on the EEOC wellness lawsuits, White House Press 
     Secretary Josh Earnest said the administration is concerned 
     EEOC's actions are, or could be, ``inconsistent with what we 
     know about wellness programs and the fact that we know that 
     wellness programs are good for both employers and 
     employees.''
       Congress was clear in the health care law. The 
     administration was clear in the regulations. And the White 
     House has again reiterated its support for these programs. 
     But apparently that is not clear enough for the EEOC. The 
     EEOC is sending a confusing message to employers--reliance on 
     Obamacare's authorization of wellness programs does not mean 
     you won't be sued.
       So, I'm working on legislation to provide employers and 
     employees even more clarity and certainty to continue to 
     offer these voluntary wellness programs and encourage healthy 
     lifestyle choices. Innovation and healthy choices should be 
     applauded, not punished.
       Workplace wellness programs give individuals some control 
     over rising health care costs. Instead of watching 
     powerlessly as more money comes out of their paychecks each 
     month to cover rising health insurance premiums--wellness 
     programs give individuals the ability to regain some control 
     over those costs.
       I admit that this represents a big shift in how we think 
     about the workplace in relation to our health. There has been 
     a sea change in how we talk about health at work. I remember 
     well the smoke in the hallways of the Nixon White House. That 
     was true in most workplaces then. These days, about the only 
     workplace you can smoke is the Speaker's office.

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