CFOs weigh charging high-earners more for health care
Employees with low- to mid-level salaries have been struggling for years to shoulder the increasing cost of carrying health insurance. In response, more finance chiefs are considering a system that bases workers’ premium costs on their take-home pay.
It’s called a healthcare cost income scale, and here’s an example of how it works: Say a company’s healthcare costs increase when it renews its health plan. Under the cost income scale, workers who make between $50,000 and $100,000 won’t see their costs increase; however, all employees who make more than $100,000 will see their premiums get bumped up.
Opponents of healthcare cost income scales say the practice is not only unfair — but also unhelpful. Reason: It doesn’t address whether an employee will create a health claim. Increased medical claims can determine how much employers healthcare costs will go up at renewal time.
Readers, weigh in: Do you think factoring employees take-home pay into their healthcare costs is a reasonable move for a company to make — or do you think it is unfair and biased?
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
The Biden administration is planning to add another reporting requirement for publicly traded companies. This time it’s taxes paid to...
Late or slow payments continue to stall progress for today’s finance teams. These delays often stem from large organizations renegotiatin...
Instant payouts are replacing traditional paychecks for millions of workers, according to a new PYMENTS Intelligence Report titled “Insta...
Here’s a common rollover scenario: An individual leaves one employer for another. The previous employer offered a 401(k) plan. The...
Heads up: Accountants will no longer enjoy a 45-day grace period to file financial reports after completing an audit. The Public Company...
College students can’t stand the 150 credit hour requirement to sit for the CPA exam. Employers are desperate to find the next wave o...
