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Overcharging/Undercharging Health Plan Premiums


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Company sponsors large group health plan. Company pays 50% and employee pays 50%. For several years, some employees were paying 50% of the premiums based on family coverage (when only enrolled as single coverage) and some were paying 50% of the premiums based on single coverage (and were enrolled in family coverage). Is there a correction program for this? VFCP perhaps?

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Guest matthew222

How many employees constitutes "some"? I would offset the future premiums of employees that were overcharged. On the flip side, I would recommend avoiding trying to recoup underpayments from the other employees. If it's a "large" health plan, it's probably not a huge deal that "some" employees underpaid, right?

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Thank you. I'm not sure the exact number of employees at this point - probably around 50 over 3 years. There is no correction program to go under? They asked that I correct being as conservative as possible - I don't want to have an issue down the road.

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Guest matthew222

If it's been 3 years (not sure how some of these employees didn't notice the wrong deductions for this long), I recommend just reimbursing the overcharged empployees the difference as soon as possible and start the new, correct deductions.

I don't know of any "programs" for this since it was an employer payroll error.

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