employer pays some employees insurance but not others.

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Latest post 02-24-2012 2:12 AM by Taxagent. 6 replies.
  • 02-23-2012 7:59 PM

    employer pays some employees insurance but not others.

    Maybe someone can shine some light on this for me and possibly point me in a direction. I work for a small commercial real estate company in New Jersey. I've known for years that at least one employee (co-worker) has his health insurance paid by my employer. About 15 months ago my employer came to me to sign a form to decline health insurance and I had resisted this because I didnt have any health insurance. My options were to sign the form or be forced to pay through the companys group policy myself. So with that being said I have been paying my health insurance for 15 months out of my weekly pay. My question is: Is the employer allowed to pay for some employee's health insurance but force other employee's to decline health insurance or make them pay for health insurance through the companys group policy? It is costing me quite a bit every month to keep the insurance and I feel that it is unfair that some have paid insurance where as I have to pay my own. Any information or help I greatly appreciate and thank you.

  • 02-23-2012 8:46 PM In reply to

    Re: employer pays some employees insurance but not others.

    Unfair but not illegal.

    The employer can pick and choose who he wants to provide benefits for.

    You have the option of seeking other employment where an employer pays for your medical insurance.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 02-23-2012 9:16 PM In reply to

    Re: employer pays some employees insurance but not others.

    adjuster jack:
    The employer can pick and choose who he wants to provide benefits for.

    True enough, but the employer and employees might lose beneficial tax treatment by picking and choosing.

  • 02-23-2012 9:21 PM In reply to

    • cbg
      Consumer
    • Top 25 Contributor
    • Joined on 12-22-2000
    • MA
    • Posts 6,836

    Re: employer pays some employees insurance but not others.

    AJ's response, while not exactly incorrect, is decidedly incomplete and as a result is rather misleading.

    To start with, just for the sake of completeness, at the present time only two states require that an employer provide health insurance at all. That will be changing in a few years but right now, unless you live in either MA or HI,  health insurance is at the opt of your employer.

    Having made the decision to offer health insurance, the employer then gets to decide whether he wants to offer it to all classes of employee, or only some. It is absolutely legal for an employer to decide to offer health insurance to full time employees but not part time; office employees but not shop employees; employees at the corporate headquarters but not employees in the branch offices; managers but not non-managers; executives but not non-executives; employees in Research and Development but not in Shipping; or any other class division that does not violate Title VII and related laws (race, religion, gender etc.).

    However, once the employer has established which is or is not an eligible class, every employee in the eligible classes has to be offered the insurance. It is their opt to accept or decline, but it MUST be offered to all eligible employees.

    All of the above, however, has to do with who must be offered insurance. It has nothing to do with whether the employer or the employee pays for it. The law does not address that issue, except to say that the employer cannot make such decisions on the basis of Title VII and related laws. Some employers pay more (or less) depending on the salary or the job position; other employers may use fully paid health insurance as a recruiting tool. This is legal. They simply can't decide that they'll pay the cost because the employee is black, or white, or male, or female, or Jewish, or Christian, or pregnant, and so on.

  • 02-23-2012 9:47 PM In reply to

    Re: employer pays some employees insurance but not others.

    Taxagent:

    adjuster jack:
    The employer can pick and choose who he wants to provide benefits for.

    True enough, but the employer and employees might lose beneficial tax treatment by picking and choosing.

    True.

    And the employer might also lose favorable rates and insurability with his insurance carrier.

    But that wasn't the question.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 02-23-2012 9:57 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,591

    Re: employer pays some employees insurance but not others.

    I know some small employers who cut it pretty close as to who is covered --and sometimes run multiple corporations with different employees in same building  so as to have very different benefit structures ---but to treat employees in the same job category  with the same firm  differently  requires more detailed  review  beyond my skills--if the plan discriminates  (as the word is used in benefit contect) then its likley to lose the favored tax treatment of health coverage being an untaxed benefit for those who get it.  A bit beyond me.  I've heard similar comments about paying people to drop off plans as putting the tax status of the plan at risk --but again need more than my memory.



  • 02-24-2012 2:12 AM In reply to

    Re: employer pays some employees insurance but not others.

    adjuster jack:

    True.

    And the employer might also lose favorable rates and insurability with his insurance carrier.

    But that wasn't the question.

    No, it wasn't the question, but it might provide some leverage for the poster to address the problem that prompted the question — if the employer's current practices are costing it lost tax benefits and/or favorable insurance rates, pointing that out might prompt the employer to reconsider its position. There is no certainty of that, of course, but it might work.

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