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Employee Health Insurance Contribution

jimbomtjimbomt 46 Posts
in HR Documents Vote Up0Vote Down
We currently charge employees a $125 pre tax contribution for their health insurance, deducted in two equal amounts from their checks. I could envision an employee having exhausted their sick and or vacation leave, getting sick, and not earning sufficient wages to pay their portion of the premium. I am considering having our Personnel Committee adopt a policy to address this issue. Either terminate the insurance (cobra type arrangement), or have the employee enter an agreement to repay us over a period of time at an agreed upon deduction/rate. We are not covered by FMLA nor do we have LTD. I am curious if anyone has a written policy addressing this issue? If so, I would certainly appreciate examining it.

Thank you
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  • 2 Comments sorted by Votes Date Added
  • NaeNae55NaeNae55 3,243 Posts
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    We do not have a written policy in place for this, but have handled on a case by case basis. The employee decides if they want the money taken out before, after, or if they will just pay us their portion (after tax) during their leave. They put it in writing and we move forward. We strongly discourage the 'after' option by reminding employees that they might lose thier insurance.

    If an employee ever wanted to make it up after their leave and failed to return, we would term their insurance for non payment of premium and back it up to when it was last paid.

    Good luck!

    Nae
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  • jimbomtjimbomt 46 Posts
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    thank you, food for thought
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