Can an employer tie health/wellness incentives to "medical outcomes" (i.e. meeting/exceeding specific biometric screening results)?

This type of incentive contribution is allowed if these types of incentive contributions are made inside a Section 125 Cafeteria Plan. Outside a Section 125 plan, one cannot due to comparability. While incentives can be tied to participation or completion of wellness programs, it is not recommended that the employer tie any incentives to medical outcomes. This practice may present a challenge for employees to meet these outcomes and thereby brings a host of potential liabilities to bear, most significantly are potential violations of the Americans with Disabilities Act (ADA), and compliance with HIPAA privacy and non-discrimination requirements. This type of practice could evoke ERISA, making the HSA contributions subject to COBRA, among other liabilities. Before undertaking any plan for medical outcomes, we highly recommend to that the employer consult a qualified benefits attorney.

Introducing UMB HSA Saver

UMB HSA Saver is a unique investment platform designed with ease in mind. Account holders can easily research, buy and sell funds with a couple clicks.

How to Use ReceiptVault

HSAs are available to help pay for current qualified medical expenses as well as to save for future expenses, all in a tax-exempt account.

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The UMB HSA empowers you with robust analytics, reporting tools and the communication support you'd expect from a top 10 HSA custodian