EXCISE TAX

T.D. 9620, page 1. These final regulations govern nondiscriminatory wellness programs in group health coverage consistent with the Affordable Care Act. They increase the maximum reward under a health-contingent wellness program from 20 percent to 30 percent of the cost of coverage and increase the maximum reward to 50 percent for a wellness program designed to prevent or reduce tobacco use. These regulations also include clarifications related to the reasonable design of health-contingent wellness programs and reasonable alternatives that must be offered to avoid prohibited discrimination.