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Is it legal for a company to pay for one employee's health insurance and not others?
Wiki User
∙ 9y ago
There are federal rules that require an employer to treat all employees who are similar (i.e. work 30 hours a week) the same for benefits. In addition, if it is a group plan, the insurer would require the employer to enroll everyone who qualifies and to have one set of rules for who qualifies.
That said, there are ways to accomplish the goal legally. For example, there are no laws about how an employer decides how much to pay someone. The group plan might cost everyone $50 a week. The employer can pay the person enough is his/her salary to cover that, so that in effect, the person is getting the group plan for "free".
Similarly, the employer can pay the person a salary that coincidentally includes the cost of a non-group (exchange or individual) plan. All of this is perfectly legal IF the wages are taxed like every other dollar the person earns. (I suppose other employees could sue for wage discrimination, but that is an entirely different issue.)
The IRS recently published a piece (http://www.irs.gov/uac/Newsroom/Employer-Health-Care-Arrangements) clarifying that an employer cannot use untaxed dollars to buy an employee's individual health insurance plan. An employer cannot "send" his employees to the exchange, and then pay their health insurance costs with pre-tax dollars.
Wiki User
∙ 9y ago
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Does a company have to offer health insurance to all employees?
No it can have eligibility limitations as setup by the business structure. For example some only offer insurance for full-time employees and others hve a longer waiting period for part-time employees
Can a employer deny a full time employee health insurance?
An employer can choose not to pay for health insurance for any employees but can not discriminate by paying for some employees in a qualified class and not others.
Can an employer in the State of Michigan provide health insurance for only certain employees and deny others?
There are no state or federal laws that require your employer to offer health insurance. They can decide to offer plans to full time employees only. They can decide to offer to salaried employees only.
How do you obtain medical insurance?
Most companies offer insurance coverage to their full time employees. Others can get insurance by calling a local insurance agent. Pick a reputable insurance company.
Can an employer offer the same insurance to employees but fully cover the premiums for some and require others to pay half of the premiums?
No, if they are similiary situated individuals. It could be done by class - say management vs. salaried For more details http://www.steveshorr.com/dictionary.htm#Similarly_Situated_Non-COBRA_Beneficiaries
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