next year health insurance plan provided by company

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sojirovs
Posts: 35
Joined: Fri Aug 18, 2017 2:43 pm

next year health insurance plan provided by company

Post by sojirovs » Wed Sep 27, 2017 4:50 pm

Hello all,

From next fiscal year, my company will change health insurance plan based on how much we make.
o Under $13 per hour
o $13 – $25 per hour
o $25.01 – $48 per hour
o $48.01 + per hour

It feels like I am taxed again, how would you feel about it?
Company hasn't announce the actual difference between each bracket yet.

Sidney
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Re: next year health insurance plan provided by company

Post by Sidney » Wed Sep 27, 2017 4:56 pm

Without regard to the specific numbers, I can tell you that it is fairly common for employee share of health insurance costs to be a function of salary.
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runner3081
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Re: next year health insurance plan provided by company

Post by runner3081 » Wed Sep 27, 2017 5:23 pm

Interesting, I have heard of this, but don't know anyone who has scaled premiums.

Once you get premiums, I would like to know the delta or percent increase between each tier.

Sidney - I think "fairly common" may be overestimating a bit. It happens yes and is more prevalent recently.
Last edited by runner3081 on Wed Sep 27, 2017 5:28 pm, edited 2 times in total.

jebmke
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Re: next year health insurance plan provided by company

Post by jebmke » Wed Sep 27, 2017 5:26 pm

My former company (I am retired) introduced this at least 20 years ago so I don't think it is unusual.
When you discover that you are riding a dead horse, the best strategy is to dismount.

runner3081
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Re: next year health insurance plan provided by company

Post by runner3081 » Wed Sep 27, 2017 5:30 pm

sojirovs wrote:
Wed Sep 27, 2017 4:50 pm
It feels like I am taxed again, how would you feel about it?
As far as this question. I would be pretty agitated IF the rates in my tier shot up a significant amount. If they somehow lowered rates for lower paid employees and kept the upper tier rates similar to rates now, I wouldn't have a huge issue.

Granted, I would not like it one bit, but wouldn't have a big enough impact to make mention of it.

sojirovs
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Re: next year health insurance plan provided by company

Post by sojirovs » Wed Sep 27, 2017 5:36 pm

runner3081 wrote:
Wed Sep 27, 2017 5:23 pm
Interesting, I have heard of this, but don't know anyone who has scaled premiums.

Once you get premiums, I would like to know the delta or percent increase between each tier.

Sidney - I think "fairly common" may be overestimating a bit. It happens yes and is more prevalent recently.
I will post here again once I find out the number

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teen persuasion
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Re: next year health insurance plan provided by company

Post by teen persuasion » Wed Sep 27, 2017 6:09 pm

DH's previous employer had a tiered system based on salary, or rather a calculation to approximate salary. He was salary, but treated as hourly in ways (had an assigned hourly rate * fixed 35 hrs per week for payroll purposes). He also only received 21 biweekly paychecks; staff in other sections were paid on a 40 hr workweek, 26 biweekly schedule.

The issue came up when calculating tiers: tier salary was defined as hourly rate * 40 * 52, not actual salary.

Your tier determined your healthcare budget - you received $x to allocate as you wished. You then had several choices in health insurance coverage, with different prices. It was possible to receive excess $ in your paycheck, if you chose the least expensive plan and were in the lowest income tier. Second lowest tier could hit zero, other tiers had to contribute something. However, the spouse opt-out on health insurance (if they had coverage at their employer) was ridiculously small, maybe $250 total.

wilshuer
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Re: next year health insurance plan provided by company

Post by wilshuer » Thu Sep 28, 2017 5:25 am

My employer tiers based on salary but applies it on the deductible side. Monthly premiums are the same regardless of compensation, but there are three tiers of deductibles set fairly reasonably for general type of employee - admin, hourly, professional/manager.

denovo
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Re: next year health insurance plan provided by company

Post by denovo » Thu Sep 28, 2017 5:37 am

sojirovs wrote:
Wed Sep 27, 2017 4:50 pm
Hello all,

From next fiscal year, my company will change health insurance plan based on how much we make.
o Under $13 per hour
o $13 – $25 per hour
o $25.01 – $48 per hour
o $48.01 + per hour

It feels like I am taxed again, how would you feel about it?
Company hasn't announce the actual difference between each bracket yet.
If you are say in the $25-$48 range and feel you are paying too much in health care premiums I am sure your employer would accommodate you if you want to take a pay cut to get into a lower wage bracket.
"Don't trust everything you read on the Internet"- Abraham Lincoln

wrongfunds
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Re: next year health insurance plan provided by company

Post by wrongfunds » Thu Sep 28, 2017 9:51 am

what makes you think that the insurance premium percentage would NOT go DOWN as your hourly rate go UP?

Hasn't it been that way all the time i.e. as a percentage wise, higher earner pays lot less for his medical insurance than lower earner person? I have no opinion whether that is "fair" or not. Besides "fair" is just a 4 letter word starting with "F".

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Pajamas
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Re: next year health insurance plan provided by company

Post by Pajamas » Thu Sep 28, 2017 9:56 am

Employers have been shifting the cost of health coverage to employees. This seems like a reasonable way to to do it as it doesn't place most of the burden on those who can least afford it.

If you are a high earner, you might not feel that way, but health coverage costs are not always equal or fair. Examples: Single people frequently pay more for their employer coverage than married people and especially people with children do, per capita. People who are healthy and don't even go for an annual checkup pay the same as people with multiple chronic illnesses. &c.

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flamesabers
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Location: Rochester, MN

Re: next year health insurance plan provided by company

Post by flamesabers » Thu Sep 28, 2017 10:05 am

OP,

It would depend on how big the gaps in premium are. For me it would be a problem if the increase in premium is so high that I would decline a raise in order to avoid getting pushed up into the next bracket.
wilshuer wrote:
Thu Sep 28, 2017 5:25 am
My employer tiers based on salary but applies it on the deductible side. Monthly premiums are the same regardless of compensation, but there are three tiers of deductibles set fairly reasonably for general type of employee - admin, hourly, professional/manager.
This is also the case for the Tricare insurance for army reservists. Soldiers in the pay-grade of E4 and below have a lower deductible then the NCOs and Officers.

sojirovs
Posts: 35
Joined: Fri Aug 18, 2017 2:43 pm

Re: next year health insurance plan provided by company

Post by sojirovs » Wed Oct 18, 2017 2:26 pm

So they have released the info today,

HSA plan (employee with family) every 2 weeks
<$13/hr: $84
$13-25: $150
$25-49: $170
$48>: $205

So it will go up by $15 for me compare to this year.
$25-49 group will pay the same.
Last edited by sojirovs on Wed Oct 18, 2017 3:43 pm, edited 1 time in total.

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dm200
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Location: Washington DC area

Re: next year health insurance plan provided by company

Post by dm200 » Wed Oct 18, 2017 2:34 pm

sojirovs wrote:
Wed Oct 18, 2017 2:26 pm
So they have released the info today,

HSA plan (employee with family) every 2 weeks
<$13/hr: $84
$13-25: $150
$25-49: $170
$48>: $205

So it will go up by $15 compare to this year.
While such tiers may not be (or have been) all that common, my guess is that such tiers and pricing as you posted may be in response to the ACA ratios for opting out of employer plans that have high percentage costs.

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