Premium payback arrangement

jscheidter

An employee who is out on workers comp. has failed to keep paying his health insurance premiums and owes us $1200. He would like to pay $100 a month to pay it back. Do we as a company need to accept his payment arrangement? Or can we just terminate his health insurnace with proper notice?

jmcaa

Have you sent him a letter notifying him that his health insurance will be cancelled within so many days if full payment is not received?

I think you need to have the documentation showing he was aware of the situation and what he had to do to be compliant. You probably have to give him so many days, by law, in order to make the payment before you can cancel him.

You should probably check with your state workmen's comp laws.

mrbill

This is a touchy area, and owing $1,200 leads me to believe that you have let it run for too long. When an employee is on WC or absent for any other reason,we still maintain their coverage, but the individual needs to pay their portion. I prepare a list, at the end of the month of amounts owed, then I notify the person. If no payment within two weeks, then a certified letter. If no payment by the end of the month, then they are cancelled.

Rockie

What Mr. Bill advocates is a better way of handling this situation than letting an employee go on and amass a large bill. We have had this happen before and they the employee decides to leave and we are left holding the bag. It's happened enough that we don't allow it any longer.