Families cannot afford dependent coverage costing as much as $15,000-$25,000 per year through employer sponsored group health insurance plans. There’s a solution to this madness.
Most employers pay nothing towards dependent premium cost. The good news is Uncle Sam often does for those who qualify.
Dependent costs of $200 per month or less is not uncommon courtesy of Uncle Sam. In some cases, costs drop to less than $50 or even “Free.”
Low-Cost Dependent Health Insurance financed in part by Uncle Sam is ACA compliant, covers pre-existing conditions and must comply with network adequacy requirements.
Dependent coverage in group plans lends to adverse selection within the group raising risk factors leading to higher plan costs. The sick or those planning to be sick enroll their dependents, cost is secondary to their needs. Dependents who are younger or not planning to be sick don’t.
Plan sponsors should do all they can to inform plan members of all options available to them. It’s in their best financial interests and goes a long way towards fulfilling their fiduciary duties.
