I’m an insurance agency executive. Here's why I have open discussions with employees about healthcare costs
An insurance executive explains how soaring healthcare costs eat into raises, and how workers should discuss alternative options with their company.
Mike Smith, an insurance executive with nearly 30 years of experience, discusses the importance of open dialogues between employers and employees regarding healthcare costs. He explains that healthcare inflation is a significant factor in wage stagnation, as seen by his company's monthly premium per employee doubling to $1,200 over the past seven years.
Smith suggests that Individual Coverage Health Reimbursement Arrangements (ICHRAs) could offer employers budget control while providing workers with more choices. He believes that discussing healthcare costs openly helps employees understand the true expense of healthcare and fosters teamwork in finding solutions. Smith also notes that employers face a choice between absorbing premium increases, giving raises, or altering benefits.
He argues that ICHRA could shift the power from employers to employees, allowing them to shop for plans that best suit their needs.
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