Increasing Employee Benefits Contributions

So, you’ve done a great job of negotiating, gnashing, arm-twisting and crying, along with some redesign choices that made the numbers get all dizzy in your head. The results are in: you actually will not see a net increase in cost of medical benefits for the upcoming renewal year.

Don’t laugh, it can happen.

So, do we pass along this miracle event to employees in the form of a zero-contribution increase? Wow, would that be amazing or what!?

Don’t do it. Continue the gradual increasing of employee contributions every single year. The fact that this ONE year prevented the company from realizing additional expenses doesn’t negate the prior 15 years with consistent double-digit trending. In all likelihood, you haven’t passed along all the increases to employees — why, then, would you not afford yourself a modicum of recovery in your one good year?

Manage the communications; speak to your ability to maintain costs better than the public this year, resulting in a nominal increase to employee contributions. Employees expect it, and the business needs to share as many costs as possible regarding healthcare. We can’t afford NOT to.


Kevin Berchelmann

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