Health plans face two challenges that often conflict with each other: reducing costs and meaningfully enhancing member outcomes. A health incentive program is the rare tool that can accomplish both. Temporary incentives can encourage those critical, first moments of building healthier habits and reward members for taking steps to prevent conditions from worsening, both of which can mitigate more expensive interventions by catching adverse health events earlier, when they’re less serious.

Influencing member behavior requires meaningful rewards that help members form new, healthy habits. Delivering this capability sounds deceptively simple but, in fact, requires three key components to be successful.

This paper details the features of an effective member reward program and outlines ways to achieve those characteristics.