Despite concerns about increasing costs, most companies remain committed to offering a competitive benefits package. What’s more, a growing number are determined to find ways to finance those benefits beyond cost sharing, according to Prudential Financial’s Study of Employee Benefits: 2006 and Beyond.
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Niko Washington, Account Executive, Johnson & Dugan
Employers are constantly looking for creative ways to mitigate health premium increases instead of the typical change to co-pays, coinsurances, deductibles and prescription drug benefits. Some companies feel implementing a spousal surcharge could be the answer.
The spousal surcharge is a monthly cost an employee will pay, in addition to their regular contribution (typically $50- $200) if their spouse is eligible for coverage elsewhere. Surcharges do not apply if your spouse is not working and does not apply to children. The objective of this program is to prevent adverse selection by those that have coverage elsewhere but choose the employer program providing the “better benefits”. Companies that implement this program are establishing the principle that their company should not be the primary insurance to a dependent who is eligible for their own primary coverage elsewhere.
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