Small Business Health Insurance Jenga

Every year our business faces its version of open enrollment. Every year the cost of providing health insurance to our employees rises a few percent, which we always chalked off as the cost of doing business. Many things go up a few percent a year.
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This year seems different and not in a good way. A couple of weeks ago I learned that if we do nothing (in terms of changing companies, policies, how-much-the-company-pays and the like), our cost will go up by over 11%. A little of that is aging, but a lot of that is well, both political and the fact that the insurers have us all by the you-know-what.stress

So within the little part of the insurance universe that we actually control, all 3,000ish square feet of it, we set about somehow limiting the damage to our employees, their dependents and ourselves. Screaming at Congress was quickly found to be ineffective, and hollering at our insurance carrier was met only with profit-glazed giggles. They know they have won. The only question is, by how much.

congress

Armed with spreadsheets and some out-of-the-box thinking, this morning we unveiled a new set of company policies, practices and explained in detail, their underlying rationale. Rather than hoots, hollers and a flurry of resignation letters, the discussion went quite well. Looks like I lucked into the ’employer mensch” award once again with the following:

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1. Sticking with the traditional Blues. We’re not rocking employees’ worlds by making them find new doctors and other health care providers.

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2. Offering a cafeteria of plans, which the Blues call “Bronze” up through “Platinum” like Olympic Medals. Getting past the gallows humor that they should be called things like “transparent” and “wiffle ball” for what they seemingly do not cover, employees like choice and I like not making theirs for them.

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3.  We did away with all the silly formulas that determined employer contribution and payroll deduction.  No longer is how much anyone does or does not pay dependent on their marital status, the color of their car, the phases of the moon or which plan they deign to choose.  There is one variable, that is fair, equitable and objective and it works like this:

As the employer, we pay a certain fixed percentage of your gross pay toward your health insurance.  If you choose an affordable plan, our contribution covers most.  If you choose a lavish plan, our contribution helps some, but payroll deduction makes up the difference.  That percentage is the same for all employees.

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So far, no one has rushed to quit, scream or stage a sit-in by the coffee pot.  As the employer, we have certainty of expense, and perhaps, a relatively happy work force. It easily could have been worse. Maybe we’ve dodged this bullet for one more year.

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