Apartment Communities

Apartment management companies typically have two main avenues to pay for wellness initiatives using pre-allocated funds, rather than finding "extra" money in their operational budget.

Property management companies often have a dedicated budget line item for employee wellness and retention.

• The Mechanism: Your fitness classes benefit not only the residents but also the on-site leasing and maintenance staff who can participate. The company can expense your services under their internal employee wellness program.

The Benefit: This is a standard business expense designed to boost employee morale, health, and productivity. The property manager gets a dual benefit: a happy staff and a popular resident event.

This is a powerful but slightly more complex mechanism that is tied directly to the Affordable Care Act (ACA) and employer-sponsored health plans.

• The Mechanism: Health insurance plans are required to spend a certain percentage of premiums on medical care (typically 80% for large group plans). If they don't meet this standard, they must issue a Medical Loss Ratio (MLR) rebate back to the employer (the apartment management company).

• How Employers Use the Rebate: When an employer receives this rebate money, they can use it in a few ways. Crucially, if the employer pays 100% of the premiums, they can retain the entire rebate amount and use it as they wish—for example, to fund future wellness initiatives.

The "Process Incentive" Pitch: Insurers also offer "process incentives" as part of their standard plans, such as discounts on premiums or cash rewards for employers whose employees participate in health initiatives (e.g., fitness classes, health screenings). By offering easy-to-implement classes with high participation rates (thanks to your marketing), you help them achieve the metrics needed for future premium discounts.