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I remember in the 1990's my company at the time paid two thi

First Part:

1- I remember in the 1990's my company at the time paid two thirds of our insurance premium. Today, my wife's employer pays zero. In addition, the ten percent deductible is now gone and we must pay $1,000 up front before the benefits kick in. That said, without flex spending, what we have is catastrophe insurance. This plan is not leading in the industry. That said: If the benefit is now a high cost, it diminishes the value and can compromise recruitment. How can companies make insurance more affordable in today's economy?
2- In many cases, the benefit package in theory adds up to 35% to your salary. If a coworker never needs to use insurance, it is difficult for them to realize how well they are actually paid. So how can companies better communicate the total compensation package and in the end, improve retention?

Second Part:

3-However, in most cases, if there was a great benefit, another benefit or salary was much less. There is a fine line with being competitive and yet maintaining costs. How should management draw this line and still attain the greatest result from their investment?

4- I wonder how the national health care plan will impact employers medical insurance plans. Will this compromise many companies benefit package?

Solution Preview

I remember in the 1990's my company at the time paid two thirds of our insurance premium. Today, my wife's employer pays zero. In addition, the ten percent deductible is now gone and we must pay $1,000 up front before the benefits kick in. That said, without flex spending, what we have is catastrophe insurance. This plan is not leading in the industry. That said: If the benefit is now a high cost, it diminishes the value and can compromise recruitment. How can companies make insurance more affordable in today's economy?
2- In many cases, the benefit package in theory adds up to 35% to your salary. If a coworker never needs to use insurance, it is difficult for them to realize how well they are actually paid. So how can companies better communicate the total compensation package and in the end, improve retention?

Second Part:

3-However, in most cases, if there was a great benefit, another benefit or salary was much less. There is a fine line with being competitive and yet maintaining costs. How should management draw this line and still attain the greatest result from their investment?

4- I wonder how the national health care plan will impact employers medical insurance plans. Will this compromise many companies benefit package?

Solution:

How can companies make insurance more affordable in today's economy?

The above scenario is true, although companies were forced to cut back on benefits packages due to the economy. It has hit the smaller employers the hardest. With health insurance costs for employers that have skyrocketed, there is no way for the smaller firm to continue offering the same benefits packages that they did ...

Solution Summary

I remember in the 1990's my company at the time paid two thirds of our insurance premium. Today, my wife's employer pays zero. In addition, the ten percent deductible is now gone and we must pay $1,000 up front before the benefits kick in. That said, without flex spending, what we have is catastrophe insurance. This plan is not leading in the industry. That said: If the benefit is now a high cost, it diminishes the value and can compromise recruitment. How can companies make insurance more affordable in today's economy?
2- In many cases, the benefit package in theory adds up to 35% to your salary. If a coworker never needs to use insurance, it is difficult for them to realize how well they are actually paid. So how can companies better communicate the total compensation package and in the end, improve retention?

Second Part:

3-However, in most cases, if there was a great benefit, another benefit or salary was much less. There is a fine line with being competitive and yet maintaining costs. How should management draw this line and still attain the greatest result from their investment?

4- I wonder how the national health care plan will impact employers medical insurance plans. Will this compromise many companies benefit package?

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