It's kind the way that credit card companies don't allow you to charge a higher price for credit purchases but do allow businesses to offer a cash discount. So

It's kind the way that credit card companies don't allow you to charge a higher price for credit purchases but do allow businesses to offer a cash discount. So businesses raise their prices and offer that cash discount, effectively charging a higher price to people using credit. This is the same thing. They can't penalize people for not participating in the Wellness Program. So they increase the employee contribution for everyone and then offer discounts for people who participate. The net effect is to penalize the people that don't participate.