The Massachusetts Department of Public Health will issue regulations with details on how employers can ensure that their wellness program qualifies for the tax credit. Even with that guidance, employers will need to be aware of how their wellness program will interact with existing laws. To take one example, any personal health information gathered in connection with a wellness program (1) must be given voluntarily (to comply with the Americans with Disabilities Act), (2) must not be disseminated in violation of the Health Insurance Portability and Accountability Act, the Massachusetts Data Security Law or other privacy laws, and (3) must be kept away from certain decision-makers to avoid claims of illegal discrimination. Many of the other concerns surrounding wellness plans are addressed in more depth here.

The new tax credit offers Massachusetts employers a chance to cut costs while implementing a program that may reduce health care costs and improve employee health and morale. Because of the complicated interaction with other federal and state statutes, however, the implementation of a wellness program must be done very carefully.

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