At Bank of Geneva, a community bank in northeast Indiana, employees get a $500 break on their $3,000 annual health insurance deductible if they don't smoke. And the potential upside doesn't end there: Workers who keep their weight, blood pressure and cholesterol in check can earn another $1,500 in annual credits.

Although our initial plan design achieved the goals of immediate return on investment and near 100% employee participation, the design itself was often viewed as overly punitive, offering much more "stick" than "carrot". These new plan designs maintain savings to the plan but place a much stronger focus on incentive and long term wellness rather than penalties...

Scotts took dramatic action because it wants to hold down health-insurance costs by "helping people live healthy lifestyles," said James Hagedorn, chairman and chief executive. The Marysville company pays for medical claims using its own funds, "so why would we admit someone into this environment when they're passing risk along to everyone else?" he asked. "Our view is we shouldn't and we won't." With operations across the country, Scotts can fire smokers legally in 21 states...

A majority of U.S. adults say they would support employer-provided financial incentives as part of their health insurance benefits in exchange for proactively living a healthy lifestyle, according to a new Wall Street Journal Online/Harris Interactive Health-Care Poll. The survey also shows that many adults would support differences in insurance costs for those who compromise their health and safety, such as if they are overweight, do not exercise regularly, do not wear seat belts, or if they smoke or drink heavily...