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Some employers have tried offering health insurance benefits to hourly workers; these attempts yielded limited results and considerable expense. We believe the poor participation was not from a lack of demand, but from a lack of a fit between traditional health insurance benefits and the realities of hourly jobs. The fact is, while employers desperately need effective recruitment and retention tools, the cure can sometimes be worse that the cold.
Why don't traditional plans fit?
Employers usually can't afford the cost associated with traditional major medical plans due to:
- High premiums
- High participation requirements
- Large administrative burdens from high turnover
What other problems do hourly employees have?
These employees have additional problems such as fluctuations in work schedules that can make it difficult for them to make up missed premiums when there is no paycheck. Also, hourly workers are frequently paid on a weekly or biweekly basis, while traditional insurance plans require a monthly payment. This makes it difficult for them to budget for one big payment per month.
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