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Medical Insurance

JF12JF12 20 Posts
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Do you think that a $0 deductible for a PPO plan is very generous in todays market? If so, would a 40-50% increase in the employees contribution be too harsh?
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  • jmcaajmcaa 224 Posts
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    $0 deductible is VERY generous! BUT, if I were the employee, I would rather have the deductible upped than have the 40-50% increase in my contribution. That is a HUGE jump and would result in many employees being unhappy AND may even cause some to go without health insurance.

    You didn't say whether your insurance plan is fully insured or self insured.
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  • marcmarc 3,126 Posts
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    I would add that a 40-50% jump may not be so bad, depending on the dollar amount as opposed to the % amount. If it went from $10 per month to $15 per month, that might be better than upping the deductible. Got to know all the math before a call can be made.
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  • JF12JF12 20 Posts
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    We are not self insured. A single person now pays About 22 dollars per check, I am looking at making it $33.55.
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  • marcmarc 3,126 Posts
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    [font size="1" color="#FF0000"]LAST EDITED ON 12-17-04 AT 03:25PM (CST)[/font][br][br]So a single person will pay $138.60 extra per year to keep the deductible at $0.00. Poll a couple of people you know will not over-react and ask what they think of that. The deductible staying the same will mean little to the very healthy and a lot to those that utilize it. Are the co-pays also changed?

    There are lots of way to tinker with the various aspects of the offerings, some are better received than others - depends on the age, family make-up and overall health of your group.

    Edit: Wow, was I ever way off - for some reason I read your number as a monthly paycheck deduction. If it is weekly, that is a huge jump. Obviously the analysis has to compare the annual additional payments to a targeted savings.

    By the way, FSA's or medical savings accounts can help offset these costs by paying them with before tax dollars.
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  • SMaceSMace 1,481 Posts
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    Are they paid weekly? If so that's a pretty big jump depending on their wage.

    Suppose you increase the deductible to $100. I just cannot fathom someone complaining about a $100 deductible. Even if it was $0.
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