If employee health care costs are hitting your organization hard, consider a tactic increasingly used by employers: Encourage workers to shop for alternative insurance plans on the private market.
According to a Kaiser Family Foundation survey, 37% of employees who work in small companies (199 or fewer workers) pay 50% or more toward their family coverage premium. Some of those employees actually may cut their costs by taking out a private health insurance policy, especially if they are young and healthy.
Consider this scenario: An employer covers employees at no or low cost, and makes the employee pick up the tab for a spouse or family coverage. Having a separate private policy may cost less than the employer’s group plan because the rates are calculated on the individual’s age and health status. A young male spouse may pay considerably less separately.