More Businesses Considering Salary-Based Premium Model
More U.S. companies are considering offering employee health care plans with premiums that are based on workers' incomes. Under the federal health reform law, employers with at least 50 workers in 2014 must provide affordable coverage or face penalties. A plan is considered affordable when an employee's premium for individual coverage does not exceed 9.5% of his or her household income. Steve Raetzman, a partner in Mercer's health and benefits consulting practice, said the strategy might not work for businesses that employ workers for lower wages, like retailers, restaurants and grocery stores.
- "Employers Consider Cutting Health-Insurance Premiums for Lower-Paid Workers" (Andrews, Kaiser Health News/Washington Post, 12/5).