My employer has been paying 75% of health insurance premiums for covered employees and dependents. I have been told that any new hires are to told that the employer will pay 70% of the employee’s premium and 50% of any dependent coverage. Can my employer change the percentages for new hires and keep the percentage as is for existing employees?
Answer by Moderator - Monday, October 19, 2009 @ 4:41pm No CommentsNo comments yet. Leave a comment |
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No, the employer contribution must be equal for all employees. The exception would be a “managers carve-out” clause that allows an insurance company to offer a higher contribution for officers of a corporation. The amount that the employer is obligated to contribute toward the employee and dependent premiums is written into the employer’s contract with the insurance company. This can be modified annually during the open enrollment period. Perhaps your employer is planning this change at open enrollment and has yet to notify existing employees.
