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Spousal Surcharges: A New Way to Keep Health Costs Down

words surcharge with pictures of money and hands

1 minute read

Some public sector employers are making significant changes to their spousal health benefit offerings. According to the 2018 International Foundation of Employee Benefits Survey, just over 20% of employers now either charge employees more to add a spouse to their health plan or exclude spouses entirely.

A spousal surcharge is just that: an additional fee an employee must pay if they want to include their spouse on the health plan. The fee helps offset the costs associated with spousal coverage and may be an extra $100 a month. Some spousal surcharges only apply to those spouses who have access to their own employer coverage and opt not to elect it. Most surcharges don’t apply to those spouses whose employers don’t offer coverage or for those who are not employed. Surcharges are also not applicable for dependent coverage.

Spousal surcharges can help employers recoup the cost of the spousal coverage as well as encouraging spouses to enroll in their own plan.1 For more information, read the full article.

 

1 https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/cms_015929.aspx

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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Steve Smith

Steve Smith

Steve Smith is a powerhouse of energy, living by the mantra "work hard, play hard." As an expert in uniting teams for a greater purpose, Steve's innovative and creative strategies in employee health and wellness are game-changers. With over 25 years of expertise in health insurance, covering compliance, cost mitigation, utilization, analytics, wellness plans, and strategic planning, Steve is the go-to expert for driving down utilization trends and fostering a culture of well-being. His clients trust him to deliver exceptional results, making him an invaluable asset in the industry. As an Employee Benefits Consultant, Steve specializes in health care consulting for Minnesota public sector organizations including fully insured, self-insured, and stop-loss plans. Steve is a licensed insurance agent and holds the designations for Managed Healthcare Professional (The Health Insurance Association of America), Certified Patient Protection and Affordable Care Act Professional (National Association of Health Underwriters), and Group Benefits Disability Specialist (Hartford School of Insurance).