Kentucky Statutes 304.17A-098 – Rewards or incentives to participate in voluntary wellness or health improvement program
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(1) An insurer issuing a group or individual health benefit plan may offer a voluntary wellness or health improvement program that allows for rewards or incentives to encourage participation or to reward members for participation, including but not limited to:
(a) Merchandise; (b) Gift cards;
(c) Debit cards;
(d) Premium discounts or rebates;
(e) Contributions toward a member’s health savings account;
(f) Modification to copayment, deductible, or coinsurance amounts; or
(g) Any combination of the incentives authorized by paragraphs (a) to (f) of this subsection.
(2) Any reward or incentive established under this section shall not be deemed an inappropriate inducement to obtain or retain insurance, in violation of KRS § 304.12-
090 and 304.12-110, or a violation of KRS § 304.12-092, if disclosed in the policy or certificate of coverage.
(3) The health plan member may be required to provide verification, such as a statement from his or her physician, that a medical condition makes it unreasonably difficult or medically inadvisable for the member to participate in the wellness or health improvement program.
(4) Nothing in this section shall prohibit an insurer from offering incentives or rewards to members for adherence to a voluntary wellness or health improvement program, if otherwise allowed by state or federal law.
Effective: July 14, 2022
History: Amended 2022 Ky. Acts ch. 64, sec. 5, effective July 14, 2022. — Created
2011 Ky. Acts ch. 93, sec. 1, effective June 8, 2011.
(a) Merchandise; (b) Gift cards;
Terms Used In Kentucky Statutes 304.17A-098
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Insurer: means any insurance company. See Kentucky Statutes 304.17A-005
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(c) Debit cards;
(d) Premium discounts or rebates;
(e) Contributions toward a member’s health savings account;
(f) Modification to copayment, deductible, or coinsurance amounts; or
(g) Any combination of the incentives authorized by paragraphs (a) to (f) of this subsection.
(2) Any reward or incentive established under this section shall not be deemed an inappropriate inducement to obtain or retain insurance, in violation of KRS § 304.12-
090 and 304.12-110, or a violation of KRS § 304.12-092, if disclosed in the policy or certificate of coverage.
(3) The health plan member may be required to provide verification, such as a statement from his or her physician, that a medical condition makes it unreasonably difficult or medically inadvisable for the member to participate in the wellness or health improvement program.
(4) Nothing in this section shall prohibit an insurer from offering incentives or rewards to members for adherence to a voluntary wellness or health improvement program, if otherwise allowed by state or federal law.
Effective: July 14, 2022
History: Amended 2022 Ky. Acts ch. 64, sec. 5, effective July 14, 2022. — Created
2011 Ky. Acts ch. 93, sec. 1, effective June 8, 2011.