It’s all just part of the compensation pie. Companies figure out what they have to spend to have people work for them, then divvy it up in wages and bennies. My company has always been self-insured, and hired an “insurance company” to administer the plan, which apparently saves them money over just buying a plan from someone. Now that I’m retired, they have a fund to pay for my insurance just as they have one for my pension, and they report on its finances periodically the same way. Employees and retirees not yet on Medicare have options for their coverage, some requiring additional payments from the worker. I always took the no-cost plan. Once reaching Medicare age, the option is take the Advantage plan or don’t. My wife is 9 years away from Medicare, so she still has the same insurance as current employees, as would our kids if we had any. No cost to us for our plans as yet.
After I retired, new employees were put in a separate tier, with no traditional pension, but additional contributions for their 401Ks. No contact with any of them, so I don’t know how their medical plans work. My son and his wife juggle their plans to get coverage for themselves and the kids at the best price. It’s a annual chore to figure out the best deal, but she works for a German company and their bennies are really good.
