• Establish an insurance cap, then offer both high- and low-cost plan options. Employees choosing the higher cost option would make up the difference out-of-pocket.
• Offer cafeteria plans, part of a Section 125 program. They allow employees to determine how to spend a limited insurance dollar. Employees can choose to either get a cash payment or dedicate that money towards health insurance, child care or additional retirement contributions. The employee must then pay any difference between the amount of the employer contribution and the cost of the program that the employee chooses.

Calculate increase impact on paycheck

As unions scrutinize your salary and insurance proposals, they’ll look at the net impact on employee paychecks.

Calculate this impact for them in advance by using a sample spreadsheet. This strategy allows you to offer ways to mitigate the impact at the same time.