The headcount and salary data for the workforce in XYZ Manufacturing's Madison, WI plant is shown in the table below XYZ has received the renewal premium amounts for healthcare in 2019 The total premium cost for a single employee will be $8,000 per year and the total premium cost for a married employee will be $20,000 per year XYZ will pay 75 of the premium cost and require employees to pay the remaining 25 of the premium cost XYZ's insurance company has described a lower premium cost plan that XYZ could offer The premium for single employees would be $7,000 per year and the premium for married employees would be $18,000 per year This plan would cover the same services and doctors hospitals The big difference is that deductibles for single coverage would increase by $500 per year and deductibles for married coverage would increase $1,500 per year Q1 Assume that all employees pay the required premium cost for coverage For each line in the table shown above (including the total line), calculate the following items Wages for this workforce Employer and employee renewal premium cost Employer and employee premium cost under the lower cost plan Employer premium cost savings for lower cost plan Q2 XYZ decides to adopt the lower premium cost plan XYZ also decides to contribute the total employer premium cost savings to a DC plan The DC plan contribution will be allocated to each employee as a percentage of the employee's wage and that percentage will be the same for each employee What will the resulting contribution be as a percentage of wages Show this DC contribution for each line in the table above, split by marital status Q3 Assume that each employee reaches the new deductible level Compare the new DC plan contribution to the increase in the healthcare deductible for each line in the table above, split by marital status Which employees are better off financially under the next lower premium cost healthcare plan (determined by comparing the deductible increase to the new DC contribution) count by Marital Status Single Married Avg Wage 10 20 $120,000 20 60 100 000 70 90 80 000 40 10 60 000 70 210 50 000 in 240 40 000 Total 250 7 Em

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The headcount and salary data for the workforce in XYZ Manufacturing's Madison, WI plant is shown in the table below. XYZ has received the renewal

The headcount and salary data for the workforce in XYZ Manufacturing's Madison, WI plant is shown in the table below.

XYZ has received the renewal premium amounts for healthcare in 2019. The total premium cost for a single employee will be $8,000 per year and the total premium cost for a married employee will be $20,000 per year. XYZ will pay 75% of the premium cost and require employees to pay the remaining 25% of the premium cost.

XYZ's insurance company has described a lower premium cost plan that XYZ could offer. The premium for single employees would be $7,000 per year and the premium for married employees would be $18,000 per year. This plan would cover the same services and doctors/hospitals. The big difference is that deductibles for single coverage would increase by $500 per year and deductibles for married coverage would increase $1,500 per year.

Q1:Assume that all employees pay the required premium cost for coverage. For each line in the table shown above (including the total line), calculate the following items.
Wages for this workforce.
Employer and employee renewal premium cost
Employer and employee premium cost under the lower cost plan
Employer premium cost savings for lower cost plan

Q2:XYZ decides to adopt the lower premium cost plan. XYZ also decides to contribute the total employer premium cost savings to a DC plan. The DC plan contribution will be allocated to each employee as a percentage of the employee's wage and that percentage will be the same for each employee What will the resulting contribution be as a percentage of wages? Show this DC contribution for each line in the table above, split by marital status.

Q3: Assume that each employee reaches the new deductible level. Compare the new DC plan contribution to the increase in the healthcare deductible for each line in the table above, split by marital status. Which employees are better off financially under the next lower premium cost healthcare plan (determined by comparing the deductible increase to the new DC contribution).

count by Marital Status Single Married Avg . Wage 10 20 $120,000 20 60 100.000 70 90 80.000 40 10 60 000 70 210 50 000 in 240 40.000 Total 250 7 Em