By Brandon Sipherd

As the Democrats and Republicans in the Senate continue the battle over healthcare reform, many employers are taking the initiative to lower the costs of healthcare offered to employees.  Companies are now encouraging employees to participate in wellness programs.  However, these programs interfere with a recent federal law that prevents discrimination based on a person’s genetics.

Employers offer employees incentives, such as cash or insurance-premium reductions, to fill out health surveys.  Some employers use the information gathered from the surveys to offer health advise or direct at-risk employees to disease-management programs.  However, last year the Genetic Information Nondiscrimination Act (GINA) limited and restricted the ability of employers and health insurers to gather and disclose genetic information, including family medical history.

GINA prohibits employers and insurers from using genetic information for coverage and employment decisions, including hiring, firing, and promoting.  Employers complain this law prevents them from promoting employee wellness plans because employers can no longer use financial incentives to encourage employees to fill out health surveys asking about their family’s medical histories.  Without these financial incentives, employers cannot increase participating in wellness programs, which may increase overall healthcare costs for employers.

According to a 2009 survey by PricewaterhouseCoopers, about 70% of employers offer wellness programs and 64% of those offer their employees incentives to complete health surveys.  Many employer wellness programs include stop smoking, weight-loss, and disease-prevention programs as well as programs for diabetes and cardiac ailments based on family medical history.  While employers argue that employee participation in wellness programs decreases total healthcare costs, GINA supporters contend that using financial incentives is an improper method of encouraging employees to disclose their family medical histories and genetic information.

Wellness programs can decrease the number of employee visits to the doctors; yet, employers argue that GINA prevents them from directing employees to wellness programs.   Many employers are attempting to get around GINA by offering reduced premiums to employees who are screened for their health.

On the other hand, over 250 medical and advocacy groups, such as the American Medical Association and American Heart Association, support GINA and continue to urge government regulators not to excuse wellness programs from the legal restrictions on collecting information such as family medical history.

This is not a small issue in the ongoing healthcare debate on Capital Hill.  The outcome of the impending healthcare reform bill may have costly consequences for employers as well as employees.

Leeds Morelli & Brown, PC is a nationally recognized leader in the area of employment law. We believe that discrimination based on a person’s genetic makeup or family medical history has no place in a democratic society.  Our firm has had considerable success in matters of employment discrimination throughout Long Island and the New York City area.  We take great pride not only in providing quality legal service and representation, but also in being there for clients when they need it most.

For more information, contact Leeds, Morelli and Brown, PC at 1-800-585-4658 for a free consultation.