How to introduce a wellness spending account

While a wellness spending account may seem straightforward, it’s more difficult to manage than it seems, says Art Babcock, senior vice-president at Aon Hewitt.

The flexibility means employees have some leeway around what they spend the money on, but there also needs to be limitations on which purchases constitute a step towards better health, he says.

Before creating a wellness account, plan sponsors should be strategic and ensure they establish a philosophy or culture of wellness that senior management supports, says Babcock. “If an organization is not really focused, then the benefit is not going to fly.”

Read: How Imax supports employee wellness through flexible funding

He suggests companies should consider the program’s goals and approach in promoting wellness before creating a wellness spending account.

After doing that, organizations should create a list of the types of purchases they’re going to reimburse, says Babcock. The list doesn’t have to be exhaustive but it should provide some guidelines for adjudicating claims, according to Babcock.

“Some groups will actually survey their employees prior to developing the list in order to get a sense of their interest. The list should be revisited on an annual basis to reassess and see what should be added.”

Read: 6 tips for engaging employees in their health