“Companies penalizing workers with high health risks” was the headline of the article in today’s USA Today.  A small number of companies are charging employees more money for health insurance if they pose special “health risks”, and the number is likely to increase due to recent changes in federal laws.  

“Employers know they have to do something,” said Garry Mathiason, a senior partner at employment and labor law firm Littler Mendelson, based in Boston. “I believe that in just the next two years, more employers will turn to penalties to change employee behavior.”  Do Carrots Taste Better to Employees Than Sticks?

In this case, there is a belief that employee behavior leads directly to added costs borne by the employer, and those costs are recoverable through additional fees and surcharges.  These employers (for the most part) have provided plenty of carrots to the employees to change their “health behavior”, including smoking cessation classes, weight loss programs, gym memberships, even rebates directly to employees on health care premiums already paid. 

It makes sense that companies are concerned.  In the last 10 years, while wages paid to employees have increased 40%, health insurance costs have doubled.  Worse yet, these increases affect small companies more than their larger counterparts. 

I am personally tired of hearing companies being vilified for charging employees more for health insurance if they fall into higher risk categories.  If companies really want to hold down health care costs, THEY CAN STOP OFFERING HEALTH INSURANCE TO THEIR EMPLOYEES.  Their costs will be zero.  No kidding.  Do the math. 

Don’t laugh too loud.  43% of today’s employers have already made that choice.  That’s why 47 million people in the country currently don’t have health insurance.  Leaders like Dan Evans at Clarian Health should be held up as a role-model.  He’s trying to hold down the annual increased costs of health-care so the organization can continue to provide insurance to their employers. 

The question isn’t whether carrots taste better than sticks to employees.  The question is whether they would risk not eating at all.