Auto Industry Benefit Changes
The automobile industry is finally waking up and adopting contribution schemes that most of us in the private sector have become familiar with over the years. Specifically:
- Chrysler will require contributions to health insurance on a sliding scale based upon income - "Top Chrysler executives, on average, will pay about $1,500 more per year for health insurance in 2007. Midlevel managers will pay about $450. Administrative employees will not pay anything additional in 2007, although their costs could go up in later years."
- Ford will now require employees who wish to cover their spouses to contribute more ($110/month) if their spouse is able to obtain coverage elsewhere. They are managing this on the honor system right now.
- According to a study done for Chrysler, Mercer Consulting noted that 19% of Fortune 500 companies use a sliding salary scale to determine health care contributions.
While the article quotes auto industry leaders as viewing themselves as "innovative," it seems to me that other industries and companies have been implementing these types of contribution systems for years.