Guest PBJ Posted November 13, 2007 Report Share Posted November 13, 2007 Employer sponsors a group medical plan. It will pay 100% of the premium for single coverage. The employee must pay the additional cost of adding a spouse or dependent. Alternatively, the employer will pay an employee $350 per quarter in cash if the employee opts-out of the health policy and enrolls in a spouse's plan. By not covering employees, the employer, of course, receives a savings. An employee has come forward and explained that the coverage under her spouse's plan will increase on Jan. 1 and will cost $500 per quarter. Rather than paying the $150 extra per quarter (the difference between the $350 and $500) the employee is going to enroll in the employer's plan. The employer is wondering whether it can have a policy that provides that if the premium under the spouse's plan is greater than $350 then the employer will reimburse the difference up to the amount of single coverage under its plan. The question was raised whether this is discriminatory and unfair? I am not convinced that this is a plan issue. This is all compensation outside of the plan. People choose cash or medical benefits. I think the question is whether the employer is willing to pay different compensation for people. ??? Is some type of plan created through this arrangement (such as a cafeteria plan except with no employee contributions)? I am so confused, so any help would be greatly appreciated!! Thank you. Link to comment Share on other sites More sharing options...
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