Group plans can give different staff groups different cover. Tiers stay fair when they follow roles, apply to everyone in a role and are easy to explain.
Start by naming the problem a second level would solve. If you cannot name one, one plan is probably enough.
Why one plan often suits a small team
One plan means one set of limits, one staff guide and one answer when someone asks what they are covered for. Nobody wonders why a colleague has a better ward.
It also avoids a numbers problem. Some insurers ask for at least two employees on each plan level, so a tier for one senior hire may not work.
When tiers make sense
Tiers help when the budget cannot stretch to richer cover for everyone, or when senior hires compare your plan with the one they would leave. Make sure the lower tier still has cover you would be comfortable defending. Keep the differences few, such as ward class (the type of hospital room the plan pays for) or the amount of life cover.
Some covers cannot be tiered. On some plans, GP (general practitioner) and specialist cover has to be the same plan level for all staff. If you are also adding new types of cover, the 20 to 50 employees guide covers that step.
Tiers follow job categories, not individuals
Insurers work with categories, not personal picks. Employees cannot usually choose their own level. The company decides, either one plan for everyone or different plans by job category, and everyone in the same category gets the same plan.
Write the rule down: which job grades sit in which tier, from what date, and what happens when someone is promoted. How a mid-year move between tiers is handled varies by plan, and we confirm it for yours.
Family cover follows the same logic. If you offer dependant cover, it is normally open to every eligible employee in the same category.
Keep personal traits out of it
The Tripartite Guidelines on Fair Employment Practices ask employers to reward staff fairly based on ability, performance, contribution and experience, and to apply relevant, objective criteria consistently. Base tiers on job grade or role, never on age, gender, race, religion or marital status.
The Workplace Fairness Act, slated to take effect in end-2027, will protect employees from discrimination based on characteristics such as age, nationality, sex, marital status, race, religion and disability. Firms with fewer than 25 employees are exempt at first. If a tier rule could look like it singles out one group, check it with an employment lawyer.
Explain the rule, and revisit it at renewal
Publish the rule, not a list of names: for example, "Managers and above are on Plan B; everyone else is on Plan A." Tell each person their plan in writing, starting with their job offer, and explain both plans in your one-page benefits guide.
At each renewal, check that the tiers still match your job grades and that each still has enough people. Some plans allow an upgrade only on the renewal date, so plan changes around it.
Before deciding, ask us for quotes on both options, one plan and two tiers, priced on the same employee list.
Sources checked 23 October 2026.
