"Opting Out" of family insurance coverage in exchange for employer contributions to profit-sharing 401(k) Plan

[Guest cosmo01]

I know that I have seen published information concerning this, but we have a situation where an employer pays 100% of the premiums for both individual and family health coverage. The employer wants to permit employees to "opt out" of family coverage and in exchange, the employer will make a contribution, in the amount of the premium, into the 401(k) profit sharing plan on behalf of the employee. Any guidance, cites, insight would be greatly appreciated!