Declining Health Insurance
RYoung
5 Posts
We a have a couple of employees who have elected not to be covered under our medical and dental plans. They are covered by their spouse's plan. By them not taking our insurance, they save the us thousands of dollars each year.
Does anyone have a policy which recognizes this and, in substitution, provide alternate benefits such as a flat dollar amount, additional time off, etc?
Does anyone have a policy which recognizes this and, in substitution, provide alternate benefits such as a flat dollar amount, additional time off, etc?
Comments
Best wishes.
I would be extra careful if you even think about "paying the employee what they "save the company" when they don't take the insurance. We have had employees ask about this. My response is that this is a benefit, just like vacation, holiday, etc is. If they don't take it, they "loose that benefit". This is their choice whether they need it or not.
My suggestion, is if you wish to "pay them what they save you" set up a true cafeteria plan and they will get some "money back'. Otherwise, how are you going to consider what to pay them (not just premium but what about all the claims you don't pay and how do you know how much the claims would be. Also, by having them enrolled, you could actually save money in your group plan (if they pay the premiums and don't use it, or if they bring down the age group etc.)
Just don't even go there. Don't consider opening up this door, unless you consider the true cafeteria plan. (I won't even go into that it would have to be offered to all employees and how many would "drop their coverage" if they were offered this.)
E Wart
Good luck.
My husband's company will pay the extra amount it costs the spouse to have the insurance at his/her company up to the amount they would pay for the employee if he/she had insurance at his company.
In other words if his company paid 150.00 to have him on insurance and he went with his wife's company and it cost her 135.00 to have him on her insurance the company would pay the 135.00. If it cost nothing than the company would pay nothing.
Shirley
How many ees do you have? and can you estimate how many you are paying to have insurance elsewhere?
Are you self-insured or fully? Did paying for other coverage have any effect on your rates/costs?
Thanks!
The math sample:
12 employees waive coverage and receive $100 per month pr $1200 annually = $14,400. Since our monthly benefit, family or single plan, is $400, we are saving $43,200.
We have the advantage, of course, of receiving some of this money back if it is not used.
We are seeing it as a win/win situation, but haven't run into problems _yet_.
All My Best~
I have a question about HSA's. Is anyone out there using them? I have researched this in our effort to lower our premium costs and have been told by insurance companies that alot of companies are moving towards the HD policies such as the HSA.
How has it worked for any of you using it?
Thanks
Elizabeth
We didn't offer a dual option, we went 100% HD plan through our same provider, set specific contribution amounts for 2007, implemented an HRA to reimburse the first 1/2 of their coinsurance. Premiums were cut in 1/2, and even with the contributions and the maximum exposure on the HRA (if everyone was reimbursed their maximum benefit), we still reduced our expense by 35%. The anticipated HRA expense will probably be 15-20% of the maximum exposure. We have 55 ees, w/ two-thirds carrying dependents.
Most employees simply took the reduction in premium and put that in their HSA, so the net check doesn't look any different. EX: weekly premium for self/spouse was $55. Went to HD, premium dropped to $30 and $25 goes to HSA (all pre-taxed). Net check remains the same.
Our waiver benefit is $100/month.