Employee Benefits Market Check Survey: Medical Contribution Strategies

As many employers begin thinking about their annual enrollment process and possible benefit changes, they will also review the contribution amounts employees pay for those benefits. Most employers offer a contribution schedule that varies by plan and family size. Still, some will include other options, depending on whether they are attempting to reduce the number of participants in the plan or trying to incentivize a healthier lifestyle.

We conducted a poll during a webcast on August 25 to see what types of contribution strategies employers currently
offer. The results are in the chart below.

Adoption of Various Medical Contribution Strategies

*Results based on 120 employer respondents (allowed to select multiple responses)

Key Findings
Balancing employee contribution amounts with plan design cost sharing measures, compensation budgets, and general economic conditions can be a delicate task. Regardless of which strategy a company decides to pursue, it should consider the following:

• Does our medical carrier have any contribution requirements?
• Will our benefits administration/HR technology system support our strategy?
• Will our coverage remain affordable?
• Does the strategy mesh with our company culture?

The strategies listed above are only one of many levers that employers can pull to manage their employee benefit plans. Should you have any questions regarding this information or other avenues to explore, please contact your local Assurex Global adviser.