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More Tiers for Insurance premiums
Benefits & Compensation
More Tiers for Insurance premiums
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Hello,
Our company has 2 tiers for its medical insurance premiums - Individual and Family.
Question: can we save on monthly insurance costs by adding more tiers (i.e individual, ind+spouse; ind
1
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Forums » Topic Forums » Benefits & Compensation » More Tiers for Insurance premiums
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More Tiers for Insurance premiums
posted at 7/8/2009 11:08 AM EDT
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Posts: 2
First: 1/27/2009 Last: 7/8/2009 |
When we looked into moving from two tier to three tier with an "employee+1" level, the family rate went up. For example, if the family rate is currently $1000/mo, the family rate would go up to $1200 while the employee+1 would go down to $800. It actually would have cost us more money, because we had more people with families than covering just one other person. For employees with with one dependent, they would save. For employees with families, they would have paid more. It was not a good deal for us. But, your scenario could be different. |
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More Tiers for Insurance premiums
posted at 7/9/2009 5:21 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
I would recommend having at least 3, if not 4, tiers to make the premium contributions more equitable. Employers can be creative as to how they calculate contributions so as to not adversely impact families too with the change. So long as your insurance carrier has somewhat sophisticated underwriting guidelines, total premiums really shouldn't be affected. |
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More Tiers for Insurance premiums
posted at 7/24/2009 10:12 AM EDT
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Posts: 3
First: 3/16/2009 Last: 7/24/2009 |
We have 3 tiers - employee, employee +1, and employee + family (which is actually employee with 2 or more covered dependents). We switched from a 2 tier plan (self and family)a couple of years ago. We are a large heavy highway construction company, self insured, and have a large portion of our employees who are court ordered to carry coverage on a dependent child and this gave them a break on the portion they pay through payroll deduction. The employee's insurance is provided free of charge as part of their benefit package. |
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