Benefit Plan Design: Charging Employees Different Premiums

Employers who are designing a health and welfare benefit plan for their employees often wonder about the rules relating to setting premiums for employees. Employers generally have significant flexibility in this part of their plan’s design. Common structures contemplated by employers include, but are not limited to:

  • Charging all employees a flat amount for their health plan
  • Charging employees a percentage of the premium for the health plan, with the percentage
    changing as employees move between tiers (self, self plus one, self plus family)
  • Giving employees a set dollar amount that they can use to offset the cost of whatever plan and
    plan tier they enroll in

Download this document to learn about the different nondiscrimination requirements to consider when designing a health and welfare benefit plan.

More From Our Blog