Can employers contribute a different amount to employees with families?

Yes, employers can contribute different benefit amounts for employees with families. This is a common practice known as Family Scaling, as healthcare costs increase with each person covered under a plan.

The decision to offer different benefit amounts for employees with and without dependents is up to you. Consider what's equitable for your team and what fits your budget.

As your ICHRA provider our platform gives you full control. You can easily set an additional pre-tax allowance for each dependent and cap the number of covered dependents (usually a spouse and children).

For example, if you set a base benefit of $500/month and a dependent allowance of $200, an employee with two dependents would receive a total of $900/month ($500 base + $400 for two dependents).

When employees accept their benefits, they'll be asked to declare dependents. If they have them, the extra funds are automatically calculated and added to their total benefit, which is clearly displayed on their dashboard.

Have more questions about family scaling? Contact us at gallagher@stretchdollar.com.