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?