Reducing Benefit Costs

HRChan

I'm looking for creative ways to reduce the cost of benefits. The only thing I come up with is to have employees be responsible for a portion of their premium. What do you do?

Down_the_Middle

In addition to cost-shifting, you might think about creating a supplemental (pre-tax) benefit program that enables employees to "supplement" their current benefit package with what you offer. In addition to offering them more CHOICE, you can save the FICA dollars that are saved via pre-tax.

Another option is to convert to a "defined-contribution" benefit program where the employer commits to "x" dollars of benefit costs and the then selects from a menu of benefits that is tailored to them while preserving the employers wish for no addt'l benefit expenses. Good luck with your challenge.