Can an Employer contribute to an HRA for Employees based on their bona fide wellness test results? Currently the Employer offers contribution discounts to employees who pass at certain levels. They want to move towards an HRA type of plan that will allow the Employer to contribute at different levels based on the wellness results.

What do you think?

The DOL issued proposed regulations for wellness plans early in 2001 that might affect your approach. They can be found at http://www.dol.gov/ebsa/regs/fedreg/proposed/2001000107.pdf. But within the limitations imposed by those regulations you could accomplish what you are proposing.