My company used to pay 50% of my health insur when I participated in group plan with 2 others. I am the oldest in company of 6 total. One person moved away so only 2 of us on health plan. Too expensive for me, even at 50% so I changed to HSA health insurance plan/high deductible plan (1250 deductible) which is lower price than previous plan. Is it okay that company still pays what they used to pay for my expensive plan, even though it’s now more than 50%? What about each year when my plan cost increases? The second employee took out his own HSA/hdhp too, but he is younger and male and company is still paying what they did for his former plan, but it is more than 50%. Should company be expected to increase their contribution each year and if so how to calculate? The two of us took out cheaper plan for us and for company, but we also assumed a high deductible which the previous plan didn’t have. How do we figure this out…what is fair.
Since health insurance rates typically increase every year, it is not common for an employer to increase their contribution percentage from one year to the next. Since they are now paying a reduced premium due to your moving to a less expensive plan, they might be willing to increase the contribution. However, they are not obligated to do so. Answer by Moderator - Friday, January 22, 2010 @ 12:55 pm 1 CommentLeave a comment |
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It is completely up to the employer to decide what percentage of the premium they wish to contribute. However, unless it is a flat rate contribution that exceeds the minimum percentage requirement, the percentage of the contribution must be equal to all employees covered under the HSA health insurance plan.
Regarding the answer/reply to the above questions, it was mentioned that the employer contribution must be equal for all employees, does this also include upper management?
In other words, the employer can’t pay only 50% of the health insurance contribution to some employees and 100% to others such as upper management?
Comment by Debra — February 2, 2010 @ 1:08 pm