Insurers May Include Wellness Programs in Individual Products on Exchanges

Health insurers are gearing up to compete for millions of potential customers who could begin shopping for an individual health plan later this year. And one strategy to win new business from individual health-insurance buyers could be by offering new and unique products.

The Pittsburgh Tribune-Review reports that the University of Pittsburgh Medical Center (UPMC) Health Plan, the health insurance arm of hospital system UPMC, has announced that it will introduce a wellness-program option next month for its Individual Advantage plans. It will include financial rewards for participating.

While fairly common in employer-sponsored health plans, wellness programs are still rare among individual plans. But those programs and other new options could become more widespread. Health insurers will need to differentiate themselves in what's expected to be a highly competitive market for customers who are required under the Affordable Care Act to buy their own coverage because they don't get it from an employer, and wellness programs with incentives could be a relatively easy way to do that.