Health IT

Wellness gift card aspires to make sure healthy bonuses stay that way

Imagine a new kind of wellness gift card that employees get as a reward for […]

Imagine a new kind of wellness gift card that employees get as a reward for participating in corporate health screenings and other activities. But, as a bonus to companies, the employers can make sure their wellness rewards are being spent on something healthy.

That concept is about two months away. A New Jersey company called United Preference thinks its approach offers things not currently available to health plans: a way of tracking how individuals spend their money and tailoring spending to not only prevent non-healthy purchases like candy bars and cigarettes, but also to provide more meaningful incentives, like an iPad.

United Preference wants to leverage its software to build a network of select stores that would accept the card. Then, employers would place incentives (i.e., cash) on the card, track how the money is spent and, as a result, maximize their investment.

Health plans are now evaluated by their Healthcare Effectiveness Data and Information Set scores, which makes encouraging preventive care increasingly important, said Mark and Pamela Hall, co-founders of United Preference.

Businesses are trying everything from cleaning out vending machines to buying pedometers, and new approaches include mobile apps to incentivize plan participants to make healthier purchases. Plus, more big companies are warming to the idea of using rewards to change unhealthy behaviors. This year 80 percent of large companies plan to use health incentives, up from 54 percent in 2011. Sometimes those incentives are a credit on their insurance premiums. Other times, it’s cash.

But people have an emotional disconnect about cash they receive as incentives from their insurance plans, said Pamela Hall, the company’s chief operating officer, basing her thoughts on discussions with focus groups at different companies.

“People may say they prefer cash, but people are spending cash rewards on things like paying bills, candy bars, and cigarettes — things not conducive to healthy lifestyles.”

She added: “What we are finding is people are motivated by getting an iPad – there’s an emotional aspect there that has not been explored before.”

United Preference is one of 10 members of the inaugural class at Chicago healthcare accelerator, Healthbox. United Preference is working on a couple of pilot programs with mentors at Healthbox as they discuss potential partnerships with healthcare plans, employers and some local governments.

Mark Hall, the chief executive officer of United Preference, said the company has the ability to provide a card that can be used at multiple retailers, so it’s convenient for users and plan providers.

“And because we can tailor those cards so that companies can track what users are spending their incentive dollars on… behavior can be correlated with health outcomes. It becomes a very valuable service to the market.”

Their end goal is to be “the currency for providing ways to improve health outcomes and costs.”

One issue that comes up with United Preference’s technology is its ability to track spending. Although the company says its software is HIPAA compliant, how many employees would want their companies to know where they shop and what they buy? How many would be willing to exchange their privacy for a bonus?

It will be interesting to monitor the issue of privacy and see how it comes into play as wellness plans and the incentives they provide increasingly feature in employer plans.

[Photo from Flickr user Four Points and Resorts]

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