Workplace wellness programs encourage healthier habits, sometimes tied to premium discounts or rewards. Programs that base rewards on health outcomes must meet federal rules, including a reasonable alternative for those who cannot meet a standard.
A participatory program rewards you just for taking part, like a gym reimbursement; a health-contingent program ties the reward to meeting a health standard and must follow extra rules, including a reward cap and a reasonable alternative.
A wellness program offers employees activities or incentives (screenings, coaching, fitness, tobacco cessation) to improve health and, ideally, reduce claims. Federal rules cap incentives and require reasonable alternatives, especially for health-based programs.