Can I offer additional pay to employees who don't take employer coverage

[Flyboyjohn]

We know from recent guidance that this is a HIPAA violation to make such an offer to just the sick employees but what if you do it for everybody?

Employers like to say "If you have coverage elsewhere we'll pay you more than if you take our coverage".

Thoughts?

[QDROphile]

It is called a cafeteria plan.

[GBurns]

That is a cash out option under a cafeteria plan.

[Flyboyjohn]

So I may have problems with cafeteria plan non-discrimination testing but no specific HIPAA or ACA violations invoking the nasty $100/day/person penalty?

[GBurns]

No. The cafeteria plan problems which would be more than just testing are additional to any HIPAA, ACA, ERISA and ADA violations.

[Chaz]

The employer should speak with counsel. Most likely, it can provide an opt-out as long as it applies to everyone (not just the sick and not just the ones who sign up for Exchange coverage or, god forbid, Medicare) and its cafeteria plan is properly drafted to permit it.. An employer can likely require that employees show evidence of other coverage but that would be more of an employee-relations issue (i.e., the employer doesn't want its employees to go "bare") than a legal one.