Tuesday, September 16, 2014

Companies Reducing Subsidies for Dependent Coverage, Eliminating Some Spouses & Adding Per-Person Pricing

According to a recent survey of 1,234 employers:
  • 22% have already reduced their subsidies for covered dependents. 
  • An additional 50% expect to cut back over the next five years.
  • 10% of the respondents have eliminated coverage for spouses with access to other coverage.  
  • 49% more are looking at doing that within five years.
  • Companies adopting a “unitized” pricing approach, where employee contributions to health benefits are on a per-person basis (rather than a single rate for all family sizes), may expand from 5% now to 52% in five years.