How The Hour Bank System Works
We normally recommend the use of an hour or "premium" bank arrangement that can coincide with coverage available for employees
working as little as 40 hours per month. The hour / premium bank approach simply reduces the premium requirements to an hourly
amount for a minimum number of hours each month (i.e. 100, 130, or 160 per month). As long as the employee has at least the
minimum amount of hours in his or her account, coverage is certified for the next month.
Any premiums generated for hours worked in excess of the minimum will be held in reserve for the employee until their hours of work
credit fall below the minimum amount. It is then used to continue coverage by supplementing the hours that are below the minimum
amount required to maintain coverage.
Adopting an hourly system allows the employer to pay an hourly premium based on the number of hours worked by the employees each
month. Employees can then "bank" additional hours over the minimum requirement to provide health coverage for up to two years in
case of any interruption in work.
