When can we adjust our employer contribution to health premiums?

With the changing economy, we are receiving many calls from clients and prospects about when and how to change their employer contribution to insurance premiums. 

At Benefaction, our answer is to wait to change the employer contributions until open enrollment.  That means if you are keeping the same insurance plans, you would wait until the next policy anniversary.  If you are revamping your insurance plans, it would be the effective date of the new plans or the new policy anniversary date.

When you change employer contribution levels, you want to be sure that your employees have the opportunity to make any changes necessary in their plan elections in relation to the new contribution levels.  For example, if the company is decreasing the contribution for dependent premiums, you want to be sure that your employees have ample notice (we recommend 60 days) and time to determine how best to provide coverage for their dependents.  Employees may want to research individual policies for their dependents or enroll dependents on a spouse’s employer’s group plan.  If your employees want assistance in researching individual policies, Benefaction Insurance provides 1:1 assistance to your employees in researching, pricing, and applying for  individual policies.

Tags: employer contributions