Although the practice isn't widespread, it could become more common because of health care reform. Effective in 2014, companies will pay a penalty if their employees seek a federal subsidy to buy outside health insurance because the cost of employer coverage exceeds a certain percentage of the employees’ income.
Companies have switched to salary-based premiums partly to help lower-paid employees keep up with rising premiums. Employers also want workers to join the company health plan so they will seek medical care when they need it and won’t miss work because of health-related issues.
Some employers have tied premiums to salaries for as long as 10 years. BCBSNE started the practice seven years ago, and 1,300 employees participate in the company's health plan.
Some experts like basing premiums on salary because it helps lower-paid employees afford coverage. Those experts also say some higher-paid workers might resent paying a bigger share. BCBSNE has not heard any complaints. Varying the share employees pay is similar to an employer paying some workers more and some less based on their position.
Information from Omaha World-Herald, 2/9/11.
