Taxable wellness incentive reports – now sent quarterly

Healthy County will now be sending taxable wellness incentive reports to our HEBP Billing Contacts on a quarterly basis instead of sending one report for the entire year. We hope that sending these more frequently will help to better meet the reporting needs of our groups.

Employees who redeemed taxable wellness incentives during the first quarter of 2026 were on reports sent to our billing contacts earlier this month. If your group's HEBP Billing Contact did not receive one, then there was nothing to report in Q1 for your county or district. Here is an example of the email that was sent in addition to your group's first quarter report (when applicable):

Dear HEBP Billing Contact,

As a member of the Texas Association of Counties Health and Employee Benefits Pool (TAC HEBP), Lone Star County employees have access to the Healthy County wellness program. By engaging in various Healthy County activities, employees can earn wellness incentives and rewards for their participation in these programs.

The value of these incentives and rewards may be considered taxable income to the employee. TAC HEBP will begin delivering these reports to the group's designated billing contact on a quarterly basis.

The three Healthy County wellness incentives and rewards listed below may be considered taxable income by the Internal Revenue Service. Since Lone Star County employees receive their health coverage through your county or district, you as the employer may be required to include the value of these incentives and rewards on the employee's W-2 form for tax purposes. It will be the county or district's decision to report these items on employees' W-2 forms. We recommend consulting with your county or staff employment or tax attorney or advisor when making these decisions.

Healthy County wellness rewards and incentives:

1. Healthy County Rewards incentive: Employees can earn up to $75 in Healthy County Rewards by completing activities on the WebMD ONE portal to purchase a gift card or merchandise on the WebMD ONE online rewards site. Only those who redeemed these rewards in the first quarter of 2026 are noted.
2. Device subsidy: Employees receive a device subsidy towards the purchase of an activity/step tracker to participate in the Healthy County contests. Employees can redeem their subsidy once every two years.
3. Blue Points: Blue Points, a program offered through BlueCross BlueShield of Texas (BCBSTX), can be redeemed for a range of merchandise including electronics, cooking gadgets, books, movies, music and more. Employees earn Blue Points by completing various activities in the BCBSTX Well on Target portal. The value of the merchandise at the time points are redeemed may be taxable.

Please reach out to Healthy County or your group's Wellness Consultant with any questions.