Bank of America will set employee healthcare contributions by salary levels

Bank of America Corp. could be at the forefront of a growing trend. Currently less than 15 percent of employers tie employee healthcare contributions to their pay level according to the consulting firm Hewitt Associates, but next year the Charlotte, N.C.-based bank will institute a salary-tiered health insurance program, reports the Charlotte Observer. Bank of America employees who earn less than $100,000 in salary and cash incentives will contribute less toward the cost of their health insurance each pay period, while those who make a minimum of $100,000 will pay more each pay period. Some employees making under $50,000 a year who choose lower-cost coverage options could reduce their per-pay-period costs by 50 percent. For example, an employee earning under $50,000 who elects family medical coverage could save $1,368 in 2011, according to a company brochure. Employees who make between $100,000 and $500,000 will face a 14 percent cost increase. For example, an employee with an annual salary of $135,000 who chooses employee-only coverage could pay an additional $208. Employees whose earnings top $500,000 will see an even larger but unspecified increase. The healthcare plan options that Bank of America offers via Aetna and Kaiser Permanente won't be impacted by the changes in employee contributions. Article

Suggested Articles

The Federal Trade Commission issued orders to five health insurance companies and two health systems seeking data to study the effects of COPAs.

An influential group of Republican lawmakers released its latest healthcare plan, which closely resembles prior Affordable Care Act repeal efforts.

An ACA public option could lead to lower premiums for commercial plans by sparking more competition, an analysis found.