Contribution Strategy
How much the employer pays, and how it is structured across tiers and plans, shapes both cost and employee satisfaction. The employer contribution determines what employees pay, which plan they pick and how many enroll.
How much you pay shapes everything.
The employer contribution determines what employees pay, which plan they pick and how many enroll. Structure choices include percentage of premium, fixed dollar amounts and how dependents are handled.
Models with your own numbers show the cost and the employee impact of each option.
Why Contribution Design Matters.
Contribution strategy decides how much the employer pays toward each tier and plan, and so how much employees pay. It affects participation, plan choice and satisfaction as much as total cost.
At mid-size, employers often review whether the employee-only contribution is generous enough, whether dependents are priced sensibly, and whether the structure steers employees to plans that fit the budget.
Changes are modeled before they are made, so you can see employer cost and employee impact.
A few more questions.
Should the employer pay more for employee-only?
Many do, but the right split depends on your goals and budget.
Can we change contributions at renewal?
Yes. Renewal is the usual time to adjust the structure.
How often should contributions be reviewed?
At least yearly, before renewal.
Can we use percentages and dollars?
Yes. Each has trade-offs, and we model them.
Do contribution changes need notice?
Employees should be told in advance. Check any plan document or legal requirements.
Related guides.
Health Insurance Broker for Mid-Size Michigan Employers
What growing Michigan employers should expect.
Analyze
We look at the renewal, the group’s claims and what is driving the increase before anyone reacts to the number.
Market
We take the group to market. CFH quotes every carrier, subject to availability, which depends on group size, county, funding and timing.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program: cost, plan performance, risk and administration.
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