medical opt out and discrimination

[Guest pc pete]

Can an employer set up a plan where there is a medical opt out provision that only salaried employees can take advantage of?

[KIP KRAUS]

Let me ask you a question about your question. In most cases the objective of the employer is to save money by offering an opt-out program. Why would the employer only want to offer it to salaried employees if they are in the same plan as hourly employees?

[Guest pc pete]

The employer currently does not pay anything to those who waive coverage and is hoping to present this as a benefit but only to salaried employees.

[GBurns]

A quick answer is No, they are in the same plan. But you still did not answer the valid question that Kip asked.

[Guest pc pete]

If the question is why they want to offer it to only salaried employees, it is b/c they are more concerned with salaried employee retention.

[GBurns]

Then if you offer it to salaried only you face a possible discrimination issue and an availabilty issue.

[Scott]

GBurns,

Is your statement about discrimination based on an assumption that this is a self-insured plan, or would there be a discrimination issue even if the plan were fully insured? What statute prohibits discrimination in an opt-out payment?