An article in the February 1 issue of the Wall Street Journal cites a problem companies face when trying to implement wellness programs for their employees. The problem raised in the article is the difficulty in gathering relevant information without violating federal law. Such laws prohibit obtaining information of a genetic nature–in particular, family medical history.
Despite the fact that participation in these programs is voluntary, the practice whereby employers offer incentives to do so, make the plans illegal. This is typical of attempts by government to inject itself into insurance programs where pricing to risk is prevalent. Benefits of such pricing are ignored in the pursuit of the goal of one price for all. 
Worksite wellness programs are a proven method of reducing the costs of medical care. Side benefits are increased productivity and healthier lifestyles. Programs such as the ones referenced in the WSJ article should be encouraged rather than stymied by government regulation. But then, this is not new–state and federal mandates have often been counterproductive insofar as healthcare costs are concerned.
In many ways this interference is part of the assault on the concept of pricing health insurance to the risks involved. Interestingly, property and casualty insurance has not had to endure this kind of attack. Everyone seems to understand that fireproof buildings with a lower risk for fires should not have to pay the same rate as those presenting a greater risk. Drivers with bad habits (drinking, spending, etc.) understandably present a higher than normal risk and extra charges for insurance are tolerated.
But not so with health insurance. At all levels of government, regulatory, judicial and legislative curbs on this principle abound. Unisex mortality and morbidity tables, mandated benefits, one-price-for-all theories–they all serve to flatten or eliminate the risk curve. Bad habits and unhealthy lifestyles of the insured are ignored in the pursuit of one price for all. The advantages of eliminating risk in pricing are loudly acclaimed, whereas benefits that may be derived from underwriting are seldom mentioned. But they can be very important to the individuals affected as well as to society at large.
Mr. Jones applies for life insurance and is required to take a physical examination. The physical reveals that he is overweight–no great surprise. Subsequently a policy is issued with an additional premium commensurate with the extra risk. Mr. Jones finds the additional premium distasteful, but also a wake-up call. He goes on a diet and exercise program and ultimately both the fat and the extra premium disappear.
