Health Insurance Employer Contributions

[Guest Anaurquijo]

Is it discriminatory or against DOL regulations for a local govt to offer employees with single coverage and those with family coverage different fixed rates to apply toward their health insurance premiums? Obviously, the fixed rate for family coverage is higher and some employees on single coverage feel they should be afforded the same amount to apply toward other plans, e.g., dental vision, etc.

[Joe Priselac]

A government is not subject to ERISA regulations. Even if it were, it is a permitted disparity to give a larger credit to family eligible employees than to single eligible employees. Look at it from this point of view. If an employer paid 100% of the cost of health insurance coverage for its employees, it would pay more in premiums for the family coverage than for the single coverage. The employer would not be required to pay the difference in premiums to the single employees.