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Spousal Coverage Limitations a Smart Strategy

01/11/19

Spousal Coverage Limitations a Smart Strategy

family's hands

The latest Employee Benefits Survey by the International Foundation of Employee Benefit Plans (IFEBP) revealed that just one in five employers (20.1%) use spousal surcharges or carve-outs for health care coverage when other employer-provided health insurance is available.

The finding came as something of surprise for us, as many MedBen clients have adopted spousal coverage limitations as a risk reduction strategy.

Back in 2013, the United Parcel Service (UPS) made headlines when it announced that it was removing thousands of spouses from its medical plan because they are eligible for coverage elsewhere. UPS blamed the Affordable Care Act for its action, but MedBen introduced the strategy well before health care reform became a topic of everyday conversation. And we’ve found that employers that have taken our advice have avoided higher costs due to the elimination of that risk.

Effective spousal plan management can greatly reduce the chance of adverse selection, which can negatively impact an employer health care plan. It also allows employers to offer quality benefits to employees and their families for a longer period of time.

Of course, helping to shape plan design is just one of MedBen’s proven ways to reduce risk. Our benefits management solutions range from leading-edge claims surveillance to advanced reporting – all of which can benefit your business. For additional information about the MedBen Advantage, contact MedBen Vice President of Sales & Marketing Brian Fargus at bfargus@medben.com.

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