Different Health Insurance Premium Charge

joannie

Rather than charging us a fixed premium per ee per month, our health insurance provider bases the premium charged per ee on that ee's age. In the past, we have charged ee's a flat fee of $xx for individual coverage or $xxx for family coverage, regardless of the amount charged by the provider. On the average we are paying @ 80% of the total insurance cost; however, this means our younger ee's are paying a greater % of their coverage than the older ee's. We are considering changing the ee contribution to a % of the actual cost rather than the flat fee. Is this legal? And is this non-discriminatory? Any insight you can give would be appreciated.

allsteaks

Our rate is equal for all employees and it is based on the demographics, history, etc. Yes, the younger end up being penalized somewhat but since we're paying 75% of everyone's they don't complain, and we consider it equitable. If your employee contribution was higher, say 60% and over, then you should consider weighting the premiums by age group. You aren't discriminating, you're paying the premium determined by your carrier/provider. One person's opinion.

Irie

Your broker should know the answer to this question. You may want to check with them.

Dutch2

We pay 100% of the ee cost and 50% of their dependent cost. This cost is a set amount depending on coverage: dep. only, child, family etc...
We do have our deductibles set up in three stages based on annual wages. The more you make the more you pay, if you use the plan.