[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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