Income-Based Premiums Help Make Health Care Affordable

As employees pay more for employer-sponsored health coverage, lower-paid workers may not be able to afford payroll deductions for plan premiums. It may be time to shake things up and consider tying premium contributions to employees’ earnings by incorporating premium tiers into health plans.Now, all employees, from the

C-suite to the mailroom, pay the same amount for health coverage at most U.S. workplaces. An alternative to this structure is to set premium levels based on employee compensation.

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