Boston, Massachusetts, May 7, 2007-The International Health, Racquet &
Sportsclub Association expressed today its ardent support for the Workforce
Health Improvement Program (WHIP) Act (H.R.1748 and S. 1038)-legislation
that promotes fitness in the workforce to help keep Americans healthy. This
legislation fits into a larger movement building in Washington to remove
federal barriers to exercise and to transform our current healthcare system
from one that focuses on "sick" care to one that focuses on prevention and
wellness.
Specifically, the WHIP Act seeks to remove barriers to worker wellness by
making fitness center memberships tax-free for employees when provided as an
employee benefit. Current law requires workers to pay income tax on such
wellness benefits.
Introduced in April by Representatives Zach Wamp (R-TN), Mark Udall (D-CO),
Ron Kind (D - WI), and Jim Ramstad (R-MN) in the House, and by Senators John
Cornyn (R-TX) and Tom Harkin (D-IA) in the Senate, the WHIP Act already
enjoys strong bi-partisan support. And the bills are expected to attract
additional co-sponsors in the coming weeks-from both parties-as the nation
looks forward to a number of health observances in May, including National
Physical Fitness and Sports Month, National Women's Health Week (May 13
through May 19), and National Employee Health and Fitness Day (May 16).
"Rising rates of obesity and Americans' sedentary lifestyles are resulting
in escalating healthcare costs," said Wamp, founder and co-chair of the
Congressional Fitness Caucus. "The WHIP Act would be an important step in
reversing this health trend by promoting physical activity, combating
obesity and preventing obesity-related diseases."
According to the Centers for Disease Control and Prevention, people who
participate in moderate-intensity or vigorous-intensity physical activity on
a regular basis lower their risk of coronary heart disease, stroke,
non-insulin-dependent (type 2) diabetes mellitus, high blood pressure, and
colon cancer. Yet, more than 50 percent of American adults don't get enough
physical activity to provide health benefits. And a startling 30
percent-more than 60 million people 20 years and older-are obese.
"If Congress is serious about increasing wellness and winning the war
against obesity, we need to provide greater access to the tools necessary to
fight back-including more opportunities to engage in exercise and fitness
activities," said Joe Moore, President and Chief Executive Officer of IHRSA.
"The negative impact that sedentary lifestyles are having on America's
fiscal and physical health crosses all party lines," Moore continued. "We
applaud all Members of Congress who have shown the fortitude to take action
on this crisis of physical inactivity that is eroding our health and
vitality as a society."
According to data from a recent survey commissioned by IHRSA, it appears
that many Americans believe they would exercise more if they had the right
kind of support. For example, more than half of Americans-57 percent-say
they would exercise more often if their employer had programs to encourage
exercise, such as providing an onsite facility or a health club membership.
And more than two in five Americans say they would exercise more often if
the expense was tax free.[1]
"Employers are increasingly interested in improving the health status of
their employees, as healthier employees are more productive, have lower
absentee rates, and have lower health care claims," says Lisa Horn, Manager
of Health Care at the Society of Human Resource Management (SHRM), a member
of the Workplace Fitness Coalition-a diverse group of 22 firms and
organizations supporting the legislation. "The WHIP Act would enable
employers to help employees focus on prevention and fitness, resulting in a
healthier lifestyle and fewer health-related expenses."
Many employers already have taken matters into their own hands by creating
work environments that support prevention and healthy living. These
companies believe that helping their employees become-and stay-physically
active not only helps the employee, but it also helps the company's bottom
line.
"I believe that giving people better access to opportunities to get and stay
in shape means more productive employees, better health and attendance, plus
lower health care cost increases," says Mahboud Zabetian, Chief Executive
Officer of WildPackets, Inc., a developer and manufacturer of computer
network solutions. Based in Walnut Creek, California, WildPackets employs
roughly 100 people-and to help them maintain healthy lifestyles, the company
offers its employees subsidized membership to a local health club.
"Passage of the WHIP Act not only would help employees in their efforts to
exercise," added Moore, "but it would be an important message for the
government to send about the critical role that exercise plays in both
preserving good health and in controlling the cost of healthcare."
The WHIP Act allows for the balanced tax treatment for the cost of fitness
center memberships as a benefit for all employees, whether the exercise
facility is in-house or located off-site. The bill also affirms an
employer's existing right to deduct the cost of subsidizing or providing
fitness center benefits for its employees. This legislation excludes the
wellness benefit from being considered income for employees, making employer
contributions to the cost of fitness center fees exempt from an employee's
income tax.
Current tax law requires employees to pay income tax on any fitness center
fringe benefit an employer might provide unless the fitness center is
located at their work site. The employees of firms unable to provide a
fitness center in-house face a discriminatory tax code that hinders their
ability to benefit from fitness center subsidies. The WHIP Act corrects
this inequity in the current tax code to the benefit of many smaller
businesses and their employees.