Employees underestimate employer medical insurance costs

According to a report issued by CCH, very few employees realize the magnitude of the expense incurred by employers who pay medical insurance benefits, even though it is generally a well-publicized fact that medical insurance costs are skyrocketing. A 2004 study by MetLife on Employee Benefits Trends showed that 28% of full-time employees believe that their employer spends less than $1,000 per year, per employee on health care benefits.  Almost half of the employees – 49% – believes their company spends less than $2,000. Only 27% of employees correctly estimated that their employer spends at least $4,000 per year, per full-time employee on health benefits.

This demonstrates a real opportunity to communicate regularly and effectively regarding company insurance and benefit costs.  Annual employee reviews are excellent opportunities to show employees the actual numbers.  And, by always including the costs of medical insurance into any discussion of compensation, employees will learn to recognize the real-dollar value of these benefits.

About the author  To change this standard text, you have to enter some information about your self in the Dashboard -> Users -> Your Profile box. Read more from this author

• The Problem with Series LLCs The new, Series LLC abandons the comforts of asset protection precedent, and introduces a new, completely untried and untested concept into which uninformed promoters and unwary business owners are stumbling. The Series LLC is an exciting new development in business entity law that is currently getting a lot of attention......
• Dealing with medical expenses Escalating medical costs leave even insured families left to cover increasing out-of-pocket costs.  While there are a number of strategies for small businesses and self-employed individuals to deduct the cost of health insurance coverage, the tax code also provides some relief allowing taxpayers to deduct medical costs. Anyone who has......

• Is it Unethical to Invest in Diseases that Can Be Treated, But Never Cured?
• Health Care Costs in Retirement