While most industry professionals would agree the COVID-19 pandemic will impact health insurance premiums, few have a grasp yet on just how significant any increase will be. Until we know more, one question employers might want to consider thinking about is whether they should pass any increase on to employees.
Although many employers have traditionally passed on parts or all of an annual premium increase to employees in the past, doing so at this time might not be a good strategy. Although bearing the extra cost for healthcare insurance might place extra weight on the employer’s bottom line in the near term, by looking at the long-term picture, there might be some solid reasons to avoid doing so. Here are a few points to consider:
Most employees will be very appreciative that their employers chose to treat them well during this time when they struggled financially. Employers should consider the benefits, increased employee productivity, enhanced loyalty and improved morale before deciding on whether they should pass on any COVID related increases to their workforce.
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