Tax Breaks for Dumbbells: New Bill Could Help

In the Catch-22 world of health insurance, it actually pays to be sick. Health (a.k.a. athletic) clubs would like to revise that strange condition.

There is some proposed legislation that could force HMOs to provide more benefits to individuals using health clubs. Former Olympic distance runner, Sen. Jim Ryun, R-Kan., and Sen. Karen McCarthy, D-Mo., are cosponsoring a bill that would provide tax breaks for insurance companies to in turn provide discounts for people who exercise on a regular basis.

Bob Shoulders, owner of Fayetteville Athletic Club, said that while it benefits everyone for people to keep fit, he’s not overly optimistic that the insurance companies are ready to commit with all their might.

“There was talk of carving a slice of that pie for wellness programs,” Shoulders said. “But as far as any actual insurance reimbursements for the wellness side of it, well, it hasn’t taken off yet. I don’t see it coming anytime soon.

“There have been some benefits for fitness programs for people recovering. And we’ll work with workman’s comp occasionally. And with some insurance settlements, we get aid to train people and get them healthy again. But insurance reimbursement for medical care in this country is very sick-oriented instead of well-oriented. All of our health care dollars are being spent on the hospitals instead of the preventative side of things that could head off much of the sickness to begin with.”

Steve Hailey of the independent Armstrong Hailey Insurance Co. in Fayetteville said companies such as Arkansas Blue Cross and Blue Shield do offer some limited benefits for individuals keeping fit, but those benefits vary from company to company. Hailey said his middle-aged clients are more concerned with wellness discounts.

According to research by the International Health, Racquet & Sportsclub Association, 37 percent of all individuals with health club memberships in the United States are between the ages of 35-54. People 55 and older make up only 17 percent.

Blue Cross and Blue Shield wanted Shoulders and FAC to provide the discount for the insured clients.

“My reply was ‘Why don’t you help give them a discount on their premiums because they’re going to be more healthy?'” Shoulders said. “They thought I was being a jerk. But I was serious.”

Policyholders of Blue Cross and Blue Shield, BlueAdvantage Administrators of Arkansas and Health Advantage are eligible for some discounts in their purchase of services and retail items at health clubs.

Shoulders said the ideal situation would have a sanctioned health club working in compliance with the insurance companies that would provide benefits for their clients who were physically active. FAC’s software records when a member checks into the club.

Nevertheless, states often add a luxury tax on health club memberships since they can’t put a sales tax on them.

“If you think about this logically, if you are trying to encourage a healthy behavior you should give people an incentive instead of penalizing them. They should provide a tax credit for these people.”

Wal-Mart Stores Inc. in Bentonville has gone the extra mile providing wellness for its employees with its own fitness center.