Employer Contributions

[saieddie]

Does anyone know if an employer can change what they contribute for benefits in the middle of the year?
(ie, has paid 100% of health premiums all year, but has decided to make employees pay 50% in the middle of the year - and no, its not open enrollment)

 

[moonlightandmargaritas]

Does anyone know if an employer can change what they contribute for benefits in the middle of the year?
(ie, has paid 100% of health premiums all year, but has decided to make employees pay 50% in the middle of the year - and no, its not open enrollment)

I don't see any reason why not. Their employee morale will be shot though...

 

[somarco]

Participation may be affected as well. Especially if the plan allows off-anniversary drops.

 

[ABC]

The employer can do that.

Employers are hurting so they want to cut costs any way they can.

A good way to offset costs for the employer is to run a dual option plan. Have a base plan that the employer will pay X% and then the employee can buy up for the richer plan.

 

[Labman]

Or maybe the employer could get a higher deductible and still be able to afford a product like Colonial's Medical Bridge 3000 to fill the gaps.

We've gotten some business unde the above scenario.

 

[moonlightandmargaritas]

A good way to offset costs for the employer is to run a dual option plan. Have a base plan that the employer will pay X% and then the employee can buy up for the richer plan.

This sounds like a very smart solution...

 

[ABC]

Or maybe the employer could get a higher deductible and still be able to afford a product like Colonial's Medical Bridge 3000 to fill the gaps.

We've gotten some business unde the above scenario.

I have used this approach before. I sold it as a voluntary product for the employees.
Sometimes I think the employee is better off putting the money in the HSA account instead of electing a "gap type" policy.

 

[Executive Benefits]

A good way to offset costs for the employer is to run a dual option plan. Have a base plan that the employer will pay X% and then the employee can buy up for the richer plan.

I second that, all my clients LOVE this option, and it gives the employee more cost control