employer requiring employee to change to spouse's plan

jenson24

I'm new to the forum. My first time posting.

An employee called the other day stating that he and his wife are enrolled in her employer's company sponsored health plan. The company she works for recently sent out a letter stating that all employees that have spouses that are offered coverage by their employer must join their spouses plan. The company is still going to offer coverage to the employees, but she will be unable to enroll because we offer her husband health insurance.

Is this legal? Is it discrimination? Any suggestions for how he/we should handle the situation?

SMace

I've heard and actually looked at INCENTIVES to drive dependents off our plan, but I've never heard of not ALLOWING someone to join a plan. If it isn't illegal, it's down right nasty and I'd think twice about what they are going to pull out from under me next. Very unusual. I would call your local DOL office and they can direct you to the right people to ask.

lnelson

What about children dependants?

Are they saying the ee cannot sign up on their coverage because the ees spouse has coverage through different er so they are not extended the option?

If so I do not think they can do that it has to be offered to ALL ees not just the single or single income ones.

Lisa

HRQ

One of my employees and her children have been on her husband's plan for years. This year, her husband's employer decided that if the employee's spouse has access to other coverage, the employee's spouse is no longer eligible for the existing coverage. The employer required documentation from the spouse indicating whether or not she has access to coverage. The dependent spouse was allowed to stay on the plan until she became eligible with us - during open enrollment.

While I was helping the employee with the form, I kept thinking "Jeez, I hope we never get to this point..." I can understand the need to save insurance premium expenses, but certainly wouldn't look forward to the backlash from the employees. That kind of change confuses the daylights out of them.