At Bigger Companies, Earn Less, Pay Less in Health Premiums

More employers—especially larger companies—are tying their employee’s health premiums and out-of-pocket expenses to the amount each worker earns as open enrollment season for 2022 health plans begins.

The trend is driven, in part, by a new understanding of health equity issues as a result of the Covid-19 pandemic. More companies are reconsidering ways to help their lower-income workers benefit from the health care coverage they provide, consultants say.

Under a wage-based premium model, workers at the bottom end of a company’s pay scale pay less for health insurance coverage than those at the top—and could also get more help with ...