Center for Health Incentives and Behavioral Economics News Archive

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Using Financial Incentives to Motivate Healthier Employee Behavior

Aditi Sen, Kevin Volpp, and George Lowenstein provide guidance to benefits plan managers about health incentive programs and discuss future research needs. The researchers note, “The optimal design, amount and duration of incentives need further research, but insights from behavioral economics regarding how people make decisions and value present and future risks and rewards offer suggestions for how to make these incentives most effective. When well-designed, incentives exploit the very decision-making tendencies that often make unhealthy behavior seem attractive”