Ive heard that employees in the lowest pay bands will have to pay the highest increases in their medical plan costs for 2007. Is that really fair to lower-paid employees?
A. Actually, employees in the lower pay bands will have lower dollar-cost increases in 2007 and will continue to pay lower premiums. UC believes that pay bands help keep medical coverage more affordable for employees in the lower pay bands. Take a look at the chart below. You can see that Pay Band 1 employees with single coverage in Health Net pay only 5.6% of the total premium, while Pay Band 4 employees pay 26.3% of the total premium. This shows that UC pays more toward the health care of lower-paid employees, and less toward the health care of those who earn more.
Related Questions
- I read that some employees medical plan costs are increasing by as much as 60% in 2007, but salaries are only increasing by about 3%. Doesn UC care that employees are losing ground on salaries?
- Ive heard that employees in the lowest pay bands will have to pay the highest increases in their medical plan costs for 2007. Is that really fair to lower-paid employees?
- What is causing the huge increases in the costs of my self-insured medical plan?
