Brief:
Health insurance premiums are rising steadily, and as they do more employers are finding the increased cost prohibited. This article uses the PGA as an example.
Their dilemma was how to provide the caddies with health insurance. Adding them to the group plan would have created an administrative nightmare, and would cost and estimated $1.4 million a year.
The solution was to give each caddy a predetermined amount of cash and let them buy their health care coverage from a health insurance company offering individual health insurance policies.
Pros:
- Individual health insurance costs less than group sponsored health insurance. On average individual health insurance costs is about half the price of an emloyer sponsored group plan.
Con:
- Individual health insurance companies can medically underwrite. This means that they can decline people in poor health. Employees with pre-existing conditions may be unable to get health insurance.
You can read the full article here.