Increasing Group Health Ins. Premiums

Red · May 2002

Our company has always paid a good percentage of the employee's group health premiums and a portion of the dependents' as well. The costs have gone up dramatically and we must consider reducing the amount the company covers. Can someone let me know what is considered the "average" amount or percentage an employer covers for employees and for dependents? What is the best way to tell employees they will have to pay more? Thanks.

ktk · May 2002

My company pays for the employee only. However, after 5 years of service, they pay for the entire family. Maybe to avoid them paying more, you can offer different types of coverage?

System · May 2002

My current company pays 100% of the employee premium, but I think this is unusual in today's times. My former employers paid 80% of the employee premium and 50% of the family premium. Hope this helps.

NaeNae55 · May 2002

My company pays about 75% with the employee paying 25%, regardless of type of coverage. The company portion changes every few years. Last time the employer reduced the amount they paid each employee received documentation in their information packet which explained how hard the company has tried to fight increased costs, why the costs went up, and how much the company would be paying. For example, it showed how much the employer expected to pay for their portion of the health coverage for the year, which was significantly higher than the year before even though they were paying less per person. Most employees understood the problem and were agreeable. Some even complimented the company on trying so hard and doing so much. The following year when premiums went down again the company picked up more of the coverage again.

Gillian · May 2002

[font size="1" color="#FF0000"]LAST EDITED ON 05-21-02 AT 09:58AM (CST)[/font][p]This is a national problem and the only way to explain is to educate your employees about why costs are increasing. If you will send me your fax number I will send you our first article on the topic. We pay 55% of the dependent coverage and 90% of single. My E-Mail address is [email]shugh@westernu.edu[/email]

Lori B · May 2002

We offer an HMO and PPO. We pay 80% of ee coverage for HMO and about 75% for HMO family coverage. We pay 72% of ee coverage for PPO and about 65% for PPO family coverage. We pushed our broker to provide statistics of what other employers are doing in our area in our industry.

Note: we also blitzed our ees with updates about the renewal process and rising costs of health care. We surveyed them if they wanted a flat out rate increase vs. partial rate increase in connection with minor plan design changes such as increased co-pays. The ees overwhelmingly voted to increase the co-pays on the theory that those who use it most should pay. Incidentally, although no one liked the news of double digit price increases, they were most appreciative that we surveyed them to get their input. It actually was a positive experience.

Increasing Group Health Ins. Premiums

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