Proposed regulations on wellness programs under group health plans 

November 20: The Treasury Department and IRS, along with the Labor Department and the Department of Health and Human Services, today released for publication in the Federal Register a notice of proposed rulemaking (REG-122707-12) with respect to wellness programs in group health coverage.

As noted in the preamble, the proposed regulations would increase:


  • The maximum allowed reward under a health-contingent wellness program offered in connection with a group health plan from 20% to 30% of the cost of the coverage
  • The maximum allowed reward to 50% for wellness programs designed to prevent or reduce tobacco use

Also addressed in the proposed regulations are clarifications concerning the reasonable design of health-contingent wellness programs and the reasonable alternatives they must offer in order not to be discriminatory.


Read the notice of proposed rulemaking: REG-122707-12 [PDF 331 KB]


The proposed regulations will appear in the Federal Register on November 26, 2012, and comments are due on or before 60 days after this date.




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