Pay to Opt Out

shargold

Is it legal to pay employees to opt out of a health insurance plan if the same amount is paid to all employees? Would this affect the ERISA discrimination regs?

Thanks for your help!

AJ SPHR

[font size="1" color="#FF0000"]LAST EDITED ON 08-24-04 AT 12:29PM (CST)[/font][br][br](I deleted the intro to my reply because it sounded harsher than I intended!)

Many employers offer opt-out incentives for employees who do not elect coverage. Typically some kind of dollar amount - $50/pay or per month.

Beave

As a public entity, we offer "opt-out" employees $3,000/yr if covered by another source.