This suggestion could revolutionize health insurance and drastically cut insurance costs for the government and employees.
When it comes to dental and vision insurance, employees that belong to a two-member family have the option to select a premium plan for themselves plus one. Thereby, they save money by not having to pay for family coverage. This option should extend to health insurance, because it will save a substantial amount of money for both employees and the government.
The problem in terms of health insurance is that, with a family of two, an employee must unreasonably pay the same health insurance premium as a family with more members. This means that the employer is also unnecessarily paying more money. Health insurance options need to offer a self + one premium, just as dental and vision plans do. As an example, this would apply to employees who are responsible for just one child or dependent and married couples with no children.
Here is how the government will save:
Using Kaiser Permanente health insurance as an example, a single employee pays a premium of $131.95 monthly. For a self + family plan, the cost is $320.67 monthly. On the back end, the government is paying a monthly premium of $391.43 for a single employee and $875.29 for a self + family plan. A self + one would provide the government a monthly savings of $92.43. (This formula was reached by multiplying the government’s contribution of the monthly self premium, $391.43 x 2, and subtracting the total from the government’s monthly family premium, $875.29.) In addition, employees would also save $56.77 monthly (using the same type of formula).
With this plan, the government would save more than $2,400 a year per eligible employee. And with all the federal employees that may be a part of a two-member family, this could very easily add up to millions of dollars saved annually. Essentially, this change would result in a win-win situation for both the government and its employees.