Tiered health insurance premiums

FrayWitzer

Company would like to charge higher-earners more for health care than lower-earners. Does anyone know of any prohibitions on their doing so?

Dutch2

I am not aware of any "prohibitions" for doing this. We have a self insured health care program and we have had a three tiered deductible program for several years now. The tiers are set at $250, $750, and $1200 and are based on the income of the ee's. This has been well received from our staff.

sonny

We pay 100% for ee but for dependant coverage, the more you make, the more you pay. We contribute 35 45 or 55% based on wage.

stilldazed

No prohibitions in Florida, but check your state's Dept. of Finance/Insurance just to be sure.

In Florida it is OK to discriminate in benefits plans (including the costs) based on defined criteria; the criteria should be in writing as a policy. I don't think you mentioned whether you are self insured or underwritten by a company--not that it matters a whole it, but be prepared for the feedback from employees. Employees do talk, and it won't take long for workers to figure out the tier structure. You should be more than prepared to address the negative comments that I would think are I would think are almost certain to arise about wages. Also, the real world seems to include exceptions and gray areas to everything you can put on paper. Include in your policy clear criteria that can be followed in any situation you can dream up.