REQUIRING employees to take insurance.
KathyA
29 Posts
Can an employer REQUIRE each employee to participate in the employer-offered health care plan in order to maintain participation rates. Thank you.
Comments
Moreover, all Insurers have a minimum premium contribution requirement that the employer must agree to provide. The employer premium contribution is also part of the contractual agreement between the Policyholder and the Insurer. Again, this requirement is to protect the Insurer against adverse selection. All Insurers knows that unless the employer is paying a major portion of the employee's premium, the only employees who will enroll in the Plan are the employees who "need" the insurance -- an adverse selection.
Typically, the minimum amount that the employer must contribute towards the employees' premium is somewhere around 75% -- although, with the rising costs of health isurance premiums nowadays, some of the Insurers have dropped that contribution level to a slightly lower level.
I hope that answers your question.