Health Insurance Participation

[Guest motzerella]

Assuming that my health insurance policy is not underwritten for 100% participation....

Is there anything illegal about allowing an employee to opt out of a non-contributing health insurance plan. Our plan provides FREE health insurance for employees and their eligible dependents. I have a few employees who have declined coverage (even though it is FREE) because they have health insurance already and do not want to deal with co-insurance.

I am being told that employees cannot elect to opt out of a non-contributory health insurance plan. If I am offering it to ALL employees, I am clearly not discriminating under ERISA.

I have also been told that if an employee does opt out, they should be receiving the premium paid to them? Is that true.

Any assistance would be appreciated. Thanks.

[GBurns]

I suggest that you post this question on the Health Plans and the Cafeteria Plans boards.

[leevena]

Assuming that my health insurance policy is not underwritten for 100% participation....

Is there anything illegal about allowing an employee to opt out of a non-contributing health insurance plan. Our plan provides FREE health insurance for employees and their eligible dependents. I have a few employees who have declined coverage (even though it is FREE) because they have health insurance already and do not want to deal with co-insurance.

I am being told that employees cannot elect to opt out of a non-contributory health insurance plan. If I am offering it to ALL employees, I am clearly not discriminating under ERISA.

I have also been told that if an employee does opt out, they should be receiving the premium paid to them? Is that true.

Any assistance would be appreciated. Thanks.

There is no requirement for someone to join a plan, free or not. No law, including ERISA states this. No need to give them the money instead either.