Providing Health Coverage for employees is good sense,
save when one (or two) of them suffers from OMS,
(Only Man/Maid Syndrome).
Suffers of OMS have no one to worry about except
themselves so spend all of their time worrying
about themselves.
Giving this employee medical coverage is handing a
pyromaniac a box of matches.
This employee will use every cent of coverage in
under a year, going for every possible test for
every disease they think of.
As those who pay Premiums learn, once one employee
uses 75% of their coverage, the premiums for everyone
go up.
It isn't that the Carrier will refuse to cover this
employee, or raise the premiums on this policy. The
Carrier will increase the cost of bulk coverage.
Employees who did not avail themselves of the
coverage, or those who used less than 10% will
still have their premiums raised.
Many employers are not aware of this penalty when
they take out their first policy, then suffer the
dislocation of next year's prohibitive costs.
The area of Heath coverage is one the wise consultant
examines as it is crucial for a content work force.
Sometimes a change of carriers is necessary. Other times,
a renegotiation.
Employees must be informed what will happen if one of them
exceeds the 75% usage.
I am not indicating the employee who is diagnosed with a
serious illness or involved in an accident or crime.
I am discussing a person who will abuse the benefit.
Sometimes contributory schemes are a solution. When an
employee realizes the more they use, the more they
pay, they will no longer see medical care as "free"
and not go on a spree.
Many consultants overlook this crucial area of cost
cutting. Don't be one of them.
