Careful consideration should be made when determining the incentive amount. The following questions can help employers determine an incentive amount that is right for their workplace.
- Does the incentive amount fit with your culture?
- Will the incentive amount drive behavior change in your population? Is there evidence to support that conclusion?
- If penalties are used, will they have a disproportionate financial impact across different income levels or racial/ethnic groups within the company?
- Is the incentive so large that it results in significant cost shifting to nonparticipating or nonattaining employees, jeopardizing their ability to afford coverage? (ACOEM Guidance Statement, p. 894)
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