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.

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