Can employer pay 100% of premium for family covergae for some employee

[Guest HealthQ]

In a insured health plan (less than 50 employees), can an employer pay 100% of premium for family coverage for some employees and only pay premium for individual coverage for others and if so does this have to be done by class of employee. (not a 125 plan)

[KJohnson]

There is nothing I know of in federal benefits law that would prevent this if the plan is fully insured and not being run through a 125 Plan. It is possible that state insurance law may have some provision regarding certain mandated coverages.

[Guest Lisssi]

I agree with K as far as laws regulating health plans go, but I think this employer is quite vulnerable to discrimination lawsuits-- if any of the employees feel that the difference had to do with being a member of a protected class.

--Liss

[smm]

It is generally ok to discriminate under your circumstances. However, check the contract for insurance that the employer signed with the agent to make sure that the employer did not agree to pay the same premium for all (it happens sometimes), and make sure that the plan is not really a medical expense reimbursement plan under 105.