Covering 100% of Health Insurance is NOT a Good Idea

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As an employer, you want the best for your employees. While in theory it seems great for your employees to provide them with 100% coverage, in reality it has some downfalls; both for you as an employer and for your employee. Here’s why:


 1) Double coverage

• Under California law, every employee is required to be covered under an employer’s group health insurance plan, if and only if, the employer covers 100% of the plan. This often means that people are double covered, because many employees are covered under their spouse’s policy and may not need the coverage from their own employer. Having employees contribute as little as $10 a month towards their health benefits is enough to eliminate this problem.  

2) The “other people’s money” syndrome

• Providing a 100% coverage creates what is often referred to as ”the other people’s money syndrome”; if something is offered for free, you will accept it, needed or not.

 3) Engagement theory

• Allowing employees to pick their own health plan leaves them feeling engaged, respected, and trusted. Even if they are responsible for a small contribution, they will most likely feel more inclined to put some effort into choosing the best value and quality plan.

Increase benefits without increasing costs: Supplemental benefits, such as dental insurance and short- and long-term disability insurance, don’t have to cost you more as an employer. If employees are willing to pay for a small portion of additional benefits, and you are able to save $700-$1,000 a year per employee by using proper plan selections methods, the savings can go towards supplemental benefits.

 Source: SuperAgent.

 SuperAgent is an endorsed CEA partner. With SuperAgent you can use web-based technology to compare, rank and evaluate your current health insurance carrier and plan against all others in California. Visit http://www.superagent.com/ today or call 888-912-7587 x303 for a fast and free demonstration and quick evaluation of your current plan.

 

Established in 1937, CEA is a non-profit association providing personalized and cost effective comprehensive information, services, and training for all aspects of human resources management,California Labor Law and relations solutions throughout California. Located throughout the state, CEA’s staff of regional directors draw upon more than 150 years combined knowledge and experience to assist in all aspects of employer-employee relations.

For more information please contact:
Scott J. Dear, Director of Membership Services
Toll free 1-800-399-5331 or 916-921-1312
Mobile 916-281-5898
Email: sdear@employers.org
Website: www.employers.org
Twitter: Caemployers