Employer contribution

Elizabetharess

We are making the change from a PPO plan to an HSA plan. In the research the controller came up with the idea that to ease into the HSA plan with a high deductible, we would pay 100% the cost of the employee only premium for the new plan. My question comes from past experience and the question of this coming back to haunt us when an employee that does not elect to participate sees that as a dollar entitlement.
In the past with former employers we opted to pay 95% to avoid that potential. Is that necessary?
I also wondered about employees that participate in their spouses plan and their expecting to have us supply that amount to go towards that plan.
What do all of you do in the case of employer contributions towards health benefits?
Help!
Elizabeth

lnelson

Just because the employee opts not to take your insurance coverage you are not obligated to reimburse them for that decision unless the ER wants to but why open that can of worms.
JMO,
Lisa

NaeNae55

Why should any employee NOT take free insurance? I think you are headed for trouble here.

Either way, it is your choice to pay or not, and it is the employee's choice to take the insurance or not. You do not have to give employees who do not elect your insurance cash instead (or anything else for that matter.)

Good luck!

Nae

NeedCoffee

Insurance, as well as any employer-paid portions of premiums, is a BENEFIT, not an employee RIGHT. You are under no obligation to give employees money to be covered under spouse's plan or otherwise.

ACU Frank

Why should I be penalized just because I don't contribute to a 401k? I want my company match anyway!

I also think it's a crock that I have to get sick before I get LTD/STD payments. That's punishing me for being healthy!

And when do I get to cash in my unused smoke breaks?

Elizabetharess

That's exactly what I am talking about. I know that ex employees with this attitude have sued former employers for what they feel should be an entitlement based on employer contributions to benefits.

dlail

We went from traditional to HDHP/HSA eff 1/1/07. We have paid 70% premiums regardless of tier, and ee pre-taxes their premium. With the new plan, we are still paying 70% of tier premium, contributing quarterly a specific amount/tier toward their HSA (for 2007), and also reimbursing 1st half of coinsurance after deductible is met (add'l $1075 or $2200 benefit) thru HRA plan. HSA and HRA benefits are contingent on plan enrollment. Also, we have one or two ees who are not eligible for owning an HSA (VA benefits). These employees still can receive benefits through the HRA. We do not give them the money (they are getting VA benefits). If employee chooses not to enroll in health plan, that's their choice, as it has always been. Some opted to go on spouse's plan, but I believe next year, we'll see enrollment go back up. People have adjusted, and in the long run they are actually putting out less money, and using "free" or untaxed money when they do pay.