Smart Benefits: Should You Surcharge?
Monday, July 09, 2018
While employers aren’t required to offer coverage to spouses or domestic partners, they often do. Yet to offset those costs, there are different types of surcharges companies charge:
- Straight Surcharge: Some companies charge employees a surcharge if their spouse or domestic partner elects coverage – whether or not they have another option – in order to alleviate some of the burden of providing insurance to additional participants.
- Limited Surcharge: To encourage spouses or domestic partners to enroll in other coverage, if available, some organizations only charge a surcharge to employees for covering a spouse or domestic partner who has access to insurance through their own employer and but declines it.
Insuring spouses or domestic partners can add up. But if limiting availability of coverage to spouses and domestic partners isn’t an option, shifting some of the costs to the employee could be.
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