Group medical & dental

[Guest jrodee]

In an effort to save money, my California group client would like to pay $100/month to each EE (about 5 ee's of a 90-ee group) who refuses medical or dental benefits because they are covered by their spouse's (other employer) group insurance. Currently, ER pays 100%, about $400 per month for EE medical and dental, although EE is also covered by spouse's equal-or-better-benefit group coverage. Most California carriers don't care what the ER does so long as ER enrolls 100% of Eligible EE's (Eligible EE being a full time EE without other group coverage). ER is not incentiveizing EE for declining group insurance. The $100 paid to the declining EE would be additional compensation.

Any problems with this kind of an arrangement?

Your thoughts and cautions!

John

[Guest mikeak]

No advice here because I'm not knowledgeable in this area but just relating personal experience. A 'large telecommunications firm' I formerly worked for (self-insured) offered this option exactly except as far as I know they didn't care if you were covered otherwise. If you elected 'waive' you got the extra 100 bucks a month.

[SLuskin]

This is a very common thing to do inside a Section 125 Plan. The employee elects between tax free insurance coverage and taxable cash. Elections are irrevocable for the plan year without a status change.