Health Benefits for Part-Time Employees

[Guest nthome]

My office has been struggling with what health benefits,if any, we are legally required to offer to our part-time employees (we have one 20 hr./wk. employee and one 30 hr./wk. employee). We pay the full health insurance premium for our full-time employees (40 hr./wk.) but have not offered any health insurance to our part-time employees. I have searched ERISA, the IRS Code,etc. and cannot seem to find guidance with regard to this issue. I would appreciate any input you might have.

[Guest Rob]

Check Code section 505 if benefits are paid under a VEBA.

[This message has been edited by Rob (edited 11-17-98).]

[Guest nthome]

Thanks, but our health insurance benefits aren't provided through a VEBA. Rather, we contract directly with a private insurer.

[KIP KRAUS]

LOOK AT YOUR INSURANCE CONTRACTS FOR THE DEFINITION OF FUL-TIME EMPLOYEE. A STANDARD INSURENCE CONTRACT USUALLY REQUIRES 30HRS. OR MOR E PER WEEK TO DEFINE ELIGIBLE EMPLOYEES. HOWEVER, YOU, AS THE PLAN SPONSOR HAVE THE RIGHT TO REQUIRE 40 OR MORE HRS PER WEEK AS FULL-TIME ELIGIBLE EMPLOYEES. I KNOW OF NO LAWS THAT REQUIRE EMPLOYERS TO PROVIDE GROUP HEALTH, DENTAL, LIFE/AD&D, LTD AND OTHE SIMILAR GROUP INSURANCES. IF YOU ARE IN A STATE THAT REQUIRES SHORT-TERM DISABILITY, THEN YOU MAY HAVE TO PROVIDE STD TO PART-TIME EMPLOYEES. STATES THAT I AM AWARE OF THAT REQUIRE THIS ARE NEW YORK, CALIFIORNIA, ROHDE ISLAND, NEW JERSEY AND HAWAHI.

[Guest nac]

generally you're (the employer) the one to set the eligibility requirements, although most fully insured plans will charge you more if you want to include p/t. if your eligibility doesn't include anyone working less than 40 hours per week, then there you go. there's no legislation that says you HAVE to cover part-timers.

the bottom line is that you can exclude any group of employees from coverage as long as the exclusion is consistently applied. p/t versus f/t is a legitimate criterion for exclusion.

[Guest SG]

If your plan is fully insured or otherwise subject to state laws, generally the statutes of that state will define who is considered a full-time employee. For example, in FL full-time is considered 25 hours/week or more.