Benefits

Ques.1 - Our company,(nonprofit in New York City),currently has a self insured Health Benefit Plan. Employees can elect to have premium contributions deducted on a pre tax or after tax basis (Section 125). Is it legal to pay the employee to opt out of the health benefit plan?

Our employees contribute 10% of the premium through payroll deductions. If an employee waives coverage under our plan, would that employee be eligible to enroll in Govenment sponsored plans, i.e. Healthy NY, Child Health Plus etc., which is basically Medicaid? Would Gov. Agency reimburse employee's cost of premiums and or co pays based on employee's total income?

Thank you for your help with this.

G

Comments

  • 3 Comments sorted by Votes Date Added
  • Our employees that waive medical or dental coverage do recieve a credit. They can use that credit to pay for other benefits such as LTD, STD, Life Ins., Flexible Spending accounts, etc. Any amount of the credit that remains unused is taxable and added to their pay.

    As far as the Gov. Agencies, I haven't a clue.
  • Hi. I'm also from NYC (Brooklyn). We have had ees who waived coverage and applied (and in some cases even got) government subsidized health coverage. In several of the cases, we got letters from the NY state government asking about what benefits the company offers and for whom. Some ees have been "forced" to take the company plan. Two chose to quit.

    There are rules in NY State concerning the maximum amount of payroll deductions that can be taken. The inquiry from the state includes a form (for the ers benefit) which when completed will indicate whether or not the deductions allowed are over the limit. If it is, than the ee would be eligible for the state program.



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