Per a 2018 IFEBP survey of its members, 25% of employers had a working spouse surcharge or no coverage for spouses offered a plan at another job. ![]() Stich said working spouse surcharges are becoming more common among employers, who have seen spouses of employees sign onto their more generous plans. If an employee’s spouse declines medical insurance offered through his or her own job in favor of FedEx’s health plan, the employee will pay a $150 surcharge every month, according to a document summarizing the benefits changes.Īccording to a 2019 survey from professional services network PricewaterhouseCoopers, the median surcharge for spouses with coverage access through another employer is $100 a month.įedEx said in the document that the average cost to cover an employee’s spouse is 76% higher than the employee. “In order to continue to provide competitive health care benefits to our team members, we pursue health care innovations, high quality care and options to keep our contributions, deductibles and out-of-pocket maximums from rising any more than necessary,” the spokesperson said. ![]() In a statement, a FedEx spokesperson said the company is “committed to delivering competitive and meaningful health benefits” to employees and reviews its health care benefits every year. “It could be because they’re struggling, but every so often companies take a strategic look at the benefits they’re offering.” “It can be for a number of reasons,” Stich said of why companies pare back benefits. The company likely saw a “constant increase” in its health care costs and looked for ways to cut some expenses while still providing suitable benefits, said Julie Stich, vice president of content at the International Foundation of Employee Benefit Plans. That’s down from $6.26 billion in the year-before quarter and after a wave of employee buyouts focused on FedEx Express.įEDEX NEWS: Annual bonus unlikely in 2020 due to 'challenging business environment'įOR SUBSCRIBERS: Will FedEx or UPS' e-commerce strategy will win out?įedEx’s performance has disappointed amid a global economic slowdown and mounting costs integrating European courier TNT Express into its network, leading to cost-cutting measures such as the buyouts. The logistics giant's salaries and employee benefits totaled about $6.09 billion in its most recently reported quarter. ![]() ![]() According to the newsletter, 441,596 employees and dependents are covered by the FedEx Corporation Group Health Plan this year. In 2020, FedEx will require a surcharge for working spouses of employees, end out-of-network coverage and phase out domestic and civil union partner benefits, the company said in a recent newsletter.įedEx said in a FAQ document for employees that it expects to pay more for health care in 2020 than in 2019, even with these changes. Health care costs at FedEx will exceed $2.1 billion in 2019, according to the company newsletter.įedEx employs around 30,000 people in the Memphis area, out of around 450,000 globally. Watch Video: FedEx, UPS present different approaches to e-commerce strategiesįedEx is shaking up its employee health benefits plan for 2020, as Memphis’ largest employer moves to pare down costs in a turbulent time for its business.
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