BusinessCostco’s new employee health plan will cover a worker’s entire workplace.
The $14.95 monthly fee will go to cover employee medical expenses and a deductible of $2,000 for most employees.
But the company also will provide a $100 contribution for each employee, which will help them pay for the cost of medical services such as prescriptions and co-pays.
BusinessCostCO co-founder and CEO Paul J. Pritzker said that because of the cost differential, he would like to make the employee contribution more affordable for the company, as well.
The contribution is a reasonable amount, but it doesn’t go far enough for the average employee, he said.
“I think the average worker is a little disappointed that they’re paying $400 a month,” he said, “because that’s a fair amount.”
Pritzkers plan also includes an employee health savings account that the company said will help employees pay for out-of-pocket costs such as medication, prescription costs and hospitalizations.
The company said it will provide the money directly to the employee.
Businesses are already contributing to employees’ 401(k) plans.
The company said the plan is available to employers who are not part of the Health Savings Accounts (HSA) program, which was created by the Affordable Care Act and offers tax-free contributions to all employees and their dependents, and to companies with more than 50 employees.
The employee contribution was introduced in October 2016, when the Affordable Healthcare Act (AHCA) became law.
The Affordable Care, or Obamacare, health care law was the first major overhaul of the U.S. healthcare system since the Depression.
Businesses that choose to use the HealthSavingsAccount are required to give employees up to $25,000 of annual payroll to offset costs related to employer-sponsored insurance, including copays, deductibles, and other out- of-pocket expenses, including medical expenses.
In a statement, BusinessCostCo said that since the Affordable Health Act’s launch in 2014, the company has contributed more than $10 billion to employees, who receive at least some of their benefits from health plans.
The average employee contribution is $9,000, the statement said.
The plan will also cover a $10,000 contribution to the employees health savings accounts.
The cost of employee health insurance coverage in the U, however, has increased significantly since the ACA became law in 2010.
The U.N. agency for health development and access (UNICEF) reported in October that about one-third of U.K. children under the age of 6 live in households that do not have health insurance.
For employees, the cost-sharing is a significant cost to employers, who pay the full premium for employees, and the employees will also pay a small deductible, according to the company.
Businesscostco said that it is committed to helping its employees pay the premium and to provide the maximum coverage possible.
It will offer the plan for employees through a separate insurance product, the BusinessCostCostCo Health Plan, which it said will be available for those with an employer-based health plan, as a separate cost-saving option for employees.
According to BusinessCost, the $14 monthly fee is part of a larger package for employees that include coverage for prescription drugs, COVID-19 coverage, a COVID vaccine, and emergency services and emergency response.
About half of businesses that participate in HealthSav, the HealthCoverage Program, offer a health plan that includes the HealthCostCo Plan, BusinessCo CostCo Health Plans and other premium-driven health plans that offer cost-cutting features such as deductibles and copays.
“This new health plan is an opportunity for businesses to grow their business while maintaining a competitive advantage by increasing employees participation and cost-control strategies,” said David Pappas, vice president of health policy for BusinessCost.
“We believe this will help our businesses reach and retain more of our customers.”
BusinessCostCo was founded in 2013.
It now has about 6,000 employees across Canada and the U and expects to add more in the coming years.
Follow The Globe’s coverage of health care: