There are many different provisions/benefits to the recently passed health reform bill. While the availability of tax credits available to small employers dominated the news earlier this week, these companies will be eligible for other types of grants.
For example, starting in 2011, the law authorizes grants totaling $200 million over five years for small companies that start wellness programs focused on efforts such as nutrition, smoking cessation, physical fitness and stress management. Companies with fewer than 100 employees qualify for the grants, which will be administered by the Department of Health and Human Services, but only new wellness initiatives -- those launched after March 23, 2010, the date the heath reform bill was enacted -- are eligible." In addition, starting in 2014, employers can offer health insurance coverage reward payments to workers who meet health benchmarks.
What will be the interest among small group employers in seeking these grants? From my experience in dealing with these size groups I do not think it will be very high. Groups this size at best have one person dedicated to HR issues so the internal resources to coordinate a health promotion effort are not there. If the grants allow for an outside entity to run the program, it could prove to be more popular than I think. However, health promotion programs take several years before they show any impact and how many employers will have the patience to wait for the pay-off? Plus since many of these sized groups do not self-insure, how will a health promotion run by an outside entity be accounted for by that organization's health insurer? I really do think the availability of these grants is a good idea but there are many issues that need to be worked out .
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