Fair Health Insurance Costs
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We have 4 union contracts that specify employees hired before a certain date pay NOTHING for family coverage. Employees hired after that date pay $100 per month for a $925 policy. We have to make a change and all the contracts are coming up for renewal soon.
Option 1 would require all employees to pay a percentage of their salary - starting at 1% this year and moving up to 6% over 3 years. Everyone would pay regardless of single or family coverage. The percentage increases would occur at the same time the COLA are received.
Option 2 would require all employees to pay a percentage of the premium - probably something in the 10-15% range but employees would only pay based on the type of coverage they have. Premium increases occur at the same time as the COLA.
Option 3 would be to decrease the benefits (our medical is cream of the crop - the company won't even sell it anymore). Unfortunately, many employees have never worked anywhere else, don't know how good it is and don't believe us when we tell them.
My boss likes Option 1 but I've never seen it implemented before. It sounds cumbersome to me. Please give me your input.
Option 1 would require all employees to pay a percentage of their salary - starting at 1% this year and moving up to 6% over 3 years. Everyone would pay regardless of single or family coverage. The percentage increases would occur at the same time the COLA are received.
Option 2 would require all employees to pay a percentage of the premium - probably something in the 10-15% range but employees would only pay based on the type of coverage they have. Premium increases occur at the same time as the COLA.
Option 3 would be to decrease the benefits (our medical is cream of the crop - the company won't even sell it anymore). Unfortunately, many employees have never worked anywhere else, don't know how good it is and don't believe us when we tell them.
My boss likes Option 1 but I've never seen it implemented before. It sounds cumbersome to me. Please give me your input.
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