PLEASE HELP-NEED ANSWER

New Orleans Lady

I'm frustrated; I posted on benefits and didn't get any answers. We are changing our employer contribution to the health insurnace, and the boss wants to require everyone to take the employee only. I did't think we could do that.....? Does anyone know?!!

JustAnEmployee

The only mandatory withholdings allowed by law are taxes and FICA. 401K, health insurance premiums, etc. are all considered voluntary on the employees part and you can not mandate that an employee participate in any voluntary benefit program. Union contracts don't usually require participation in a health insurance plan, but you might want to check on that if you're a union shop. Otherwise, your boss is out of luck, he can not forcibly insure an employee and require the employee to pay part of the expense.

Margaret Morford

I think you can make it a condition of employment that employees carry insurance on themselves, either through your company or prove that he/she has it through another company. If you will search the Forum, I think several of us answered this question for someone just recently. Call me if you do not find the answers and I'll walk you through the process.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Down_the_Middle

I do think you can require employees to take at least employee-only coverage (as a prerequisite to being employed), but I'm not certain why an employer would really want to do this----other than to maintain minimum participation levels. It's kind of analagous to forcing someone to take a pay increase that they choose to reject. Why do it? Why not use those limited benefit dollars in an area where they are better appreciated and valued greater? If converting your health plan means some employees will choose to drop it, then I would let them make that decision. Forcing them to pay for something they either do not want or feel they can afford is a recipe for an employee relations volcano.

Margaret Morford

DTW,

I need to clarify. You only require employees to have some sort of medical coverage on themselves. It doesn't have to be with your company. (They only need to provide proof that they have it elsewhere.) Many employees (particularly the very young)will waive insurance to save the cost of the premiums. Then they are in a car accident or become very ill and have no way to pay for the hospital care they need. Their employers wind up taking up collections, etc. trying to help. Or an employee that has waived coverge will not go to the doctor to have things checked out in the early stages because it will cost them significant money to see a doctor. They ignore early signs and symptoms because they have no insurance. It encourages them to look after their health.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]