I just started a new job and my employer is asking for me to pay 25% of my own health insurance and all of the cost for adding my children. I did not have to pay anything with my previous employer. Can they do this? I thought that the employer always pays for the company health insurance.
Answer by moderator — June 16, 2009 @ 9:09 pm 1 CommentLeave a comment |
|
Your previous employer was apparently more generous than your new employer. It is not uncommon that an employer, when establishing a group health insurance policy, can request that employees pay a portion of the premium. When applying for coverage, the employer must disclose the employer contribution to the insurance company for both employees and dependents. These can be different percentages. If the employer contribution is 75%, that leaves a 25% employee contribution. There are many contribution requirements for employers, but 75% likely exceeds this minimum. This depends on the size of the company and the state in which you reside. If the 100% employee contribution to insure your children is too high, you do not need to include them on the group coverage. Consider purchasing separate insurance for your children. If your children are currently without health insurance, add them to the group policy now. You can always remove them from the group coverage when you find a more affordable option. The premium for the 25% employee contribution for yourself will probably be less expensive than you could find on an individual plan, so you will want to enroll in the group plan.
Depending on how much you are paying for your dependents you maybe better off getting them an Individual Health Insurance plan. Sometimes, group plans are more expensive for dependents then it would be to get them their own personal health policy. This would depend on the size of the group and what plans are offered.
Comment by Lesley — June 18, 2009 @ 10:29 am