Safeway’s Health Measures program follows healthcare-reform amendment

SAN FRANCISCO Safeway’s Health Measures program — a wellness-driven healthcare program that provides employees with incentives to pursue healthier lifestyles — appears to be the real-world example on which a recent amendment to healthcare reform was based, the San Francisco Chronicle reported Thursday.

Sens. John Ensign, R-Nev., and Tom Carper, D-Del., members of the Senate Finance Committee, last week won strong support from both sides of the Congressional aisle for an amendment to the Senate Finance Committee’s healthcare reform bill that will incentivize Americans to lead healthier lifestyles as part of an effort to lower their overall healthcare costs.

“Weight gain and unhealthy lifestyles that focus on smoking and lack of exercise have sky-rocketed our healthcare costs,” Ensign said in a statement released last week. “These costs could be lowered by focusing on what makes us healthy — through weight loss programs, smoking cessation and preventive care. Voluntary employee participation in these areas should naturally be reflected in lower healthcare costs,” he said.  “My amendment would guarantee that the incentive is strong enough for Americans to want to participate. This isn’t just about offering financial incentives; this is about making Americans healthier.”

The amendment passed with overwhelming support from both parties with a vote of 18-4.

Under current HIPAA wellness program regulations, health plans can offer financial rewards to individuals based on achieving a certain health goal only if certain criteria are met. The current reward threshold is limited to less than 20% of the total cost of the employee’s coverage.  The Ensign-Carper amendment will increase the existing reward to 30% and give the Department of Health and Human Services the authbority to increase the reward to 50%.

The Ensign-Carper amendment, or the “Safeway Amendment” as described by one Ensign spokesman, will also provide waivers to participants who cannot meet the applied standard due to a medical condition.

The Senate HELP Committee included a similar provision in its reform bill earlier this year, sponsored by Sen. Tom Harkin, D-Iowa. The HELP provision like the Ensign-Carper amendment provides more flexibility under HIPAA and expands the amount that is allowed for employers to reward employees for participating in wellness programs from 20% to 30%.

The Coalition to Advance Healthcare Reform, founded by Safeway CEO Steve Burd, applauded the bipartisan passage of the wellness amendment. “Many of CAHR’s members have successfully pioneered wellness programs that have reduced costs and enhanced the overall health of their employees. These programs are an important piece of the overall health reform puzzle,” stated CAHR executive director Darren Willcox.

“CAHR is pleased to have worked with leaders of both the Senate HELP Committee and now the Senate Finance Committee to amend the legislation moving its way through the Congress,” Willcox said. “We look forward to working with Sens. Harkin, Ensign, and Carper to ensure these changes remain in whatever final healthcare bill passes later this year. By encouraging Americans to live healthier lifestyles, these amendments could lower the long-term cost of health care.”