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Terminating Small ER Health Plan or Reducing Contributions


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Hello,

We have a client with fewer than 10 employees that currently has a health plan 100% paid by the employer. The employer would either like to make the plan 100% employee paid or terminate it outright.

Does anyone one which one would be easier adminsitratively? Also, what employee notices/disclosures would the employer need to provide?

Thanks

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My guess is that the carrier has some kind of contribution/participation requirement, which would be violated by this action. So if your client changed contribution to 0, the carrier could (and probably would) cancel the contract. You may want to check your carrier for these rules.

Administratively, this would be the easiest, no more health plan.

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