• FREE RESOURCES
        • Creating a Legally Sound Remote Work Policy: The 5 Biggest Pitfalls to Avoid
          Creating a Legally Sound Remote Work Policy: The 5 Biggest Pitfalls to Avoid
          Employment Law
          FMLA Cheat Sheet: A Handy At-A-Glance Guide
          HR Career & Self-Care
          Lead Magnet: 110 Traits of Highly Effective HR Pros
          11 Traits of Highly Effective HR Pros
          Recruiting
          New Employee Checklist
          Recruiting
          How to Write a Job Description Worksheet
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
  • CORONAVIRUS & HR

  • LOGIN
  • SIGN UP FREE

HR Morning

  • FREE RESOURCES
        • Creating a Legally Sound Remote Work Policy: The 5 Biggest Pitfalls to Avoid
          Creating a Legally Sound Remote Work Policy: The 5 Biggest Pitfalls to Avoid
          Employment Law
          FMLA Cheat Sheet: A Handy At-A-Glance Guide
          HR Career & Self-Care
          Lead Magnet: 110 Traits of Highly Effective HR Pros
          11 Traits of Highly Effective HR Pros
          Recruiting
          New Employee Checklist
          Recruiting
          How to Write a Job Description Worksheet
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
  • CORONAVIRUS & HR
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • More
    • Leadership & Strategy
    • Compensation
    • Staff Administration
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • Employee Services
    • Work Location
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans

Navigating the complicated issue of spousal surcharges: 4 options to consider

aca, obamacare, healthcare reform
Jared Bilski
by Jared Bilski
August 1, 2017
2 minute read
  • SHARE ON

When it comes to spousal surcharges and all the fallout that follows such a move, employers have a variety of options to choose from.
It’s understandable that employers are looking for ways to kick spouses off of their plans or, at the very least, limit the availability to certain individuals.
The average spouse can cost up to $1,179 more than the actual policyholder on a health plan, according to a comprehensive study by the Employee Benefit Research Institute (EBRI).
Finance chiefs that are considering adding a spousal surcharge or charge out to their own healthcare benefits are certainly in good company. A recent “Employee Benefits Survey” by the International Foundation of Employee Benefit Plans (IFEBP) found that nearly a quarter (21%) of employers have implemented some form of spousal surcharge or carveout.

What’s right for your firm?

Depending on the needs of your company, there are a number of different spousal surcharge/carveout options. Adam Abelsom, the associate director of IFEBP, recently highlights the basics of the four major options for employers:

  1. The Straight-Up Spousal Surcharge. The standard spousal surcharge is exactly what it sounds like: A surcharge employees’ spouses must pay in order to contribute to the additional cost burden of providing healthcare coverage to participants of the plan.
    This tactic is often sold as a simple, straightforward means keeping up with rising costs to provide healthcare to employees and their spouses.
  2. The Limited Surcharge. If your company feels a blanket surcharge penalizes some workers unfairly — e.g., employees who’s spouses don’t have the option of getting health insurance from an employers — this option tends to offer a nice middle-ground. Typically, limited surcharges are imposed on employees when spouses are offered coverage through their own employer but still opt to get coverage through their spouse.
  3. Limited Spousal Coverage. A more drastic approach to the limited surcharge, limited spousal coverage policies prohibit employees’ spouses from obtaining healthcare coverage if they have the option of getting coverage through their own employer.
  4. No spousal coverage. Rising costs have caused some employers to take a very hard stance against spousal coverage. By prohibiting any type of spousal coverage, employers are guaranteed to cut costs, but they also run the risk of hurting morale as well as recruiting and retention. Still, this option is slowly gaining traction, especially among larger firms. According to a Mercer study, one in ten large employers currently excludes spouses from any type of healthcare insurance.

Get the latest from HRMorning in your inbox PLUS immediately access 10 FREE HR guides.

I WANT MY FREE GUIDES

Keep Up To Date with the Latest HR News

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

Sign up for a free HRMorning membership and get our newsletter!
  • This field is for validation purposes and should be left unchanged.
HR Morning Logo
  • Facebook
  • Twitter
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • Leadership & Strategy
  • Compensation
  • Staff Administration
  • Policy & Procedures
  • Wellness
  • Staff Departure
  • Employee Services
  • Work Location
  • HR Career & Self-Care
  • Health Care
  • Retirement Plans

HRMorning, part of the SuccessFuel Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day’s headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Privacy Policy Terms of Service
Copyright © 2022 SuccessFuel

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

preloader