To use toward health costs?
What is this called?
2007-01-30 15:51:24 · 6 answers · asked by Anonymous in Business & Finance ➔ Insurance
With some limitations it is ok for companies to do this. If a company contributes a flat amount - say $100 per month - to the cost of group insurance for EACH employee, then they can have a formal arrangement where they will give the money in cash to employees who opt out of the group package.
The way they do it is, they give everyone $X raise (say, $100 per month). Then, they deduct the $100 per month from the checks of those who enroll in group coverage. That way, if an employee opts out, they keep the $100 and can use it on private insurance.
It has to be a formal plan adopted by the board of the corporation, and it must treat all employees equally.
2007-01-31 08:44:03 · answer #1 · answered by View from a horse 3 · 0⤊ 1⤋
Yes but it is rare. Thre is no formalname to the practice. Usually it is done in lieu of group health plans. The problem is some people pocket the money and go uninsured. People with health problems can't get the individual coverage in most States while some States (like California) requires the insurance company accept all employees with employer's with 50 or less employees regardless of health at standard rates for group insurance.
2007-01-31 00:36:53 · answer #2 · answered by california bill 2 · 0⤊ 0⤋
Rob is on the right track. It is usually offered by employers to entice employees who have coverage elsewhere from obtaining a second plan. As an agent, I would never advise one of my clients to offer this type of thing to someone who does not have insurance.
2007-01-31 08:45:30 · answer #3 · answered by Insurance Biz CT 5 · 1⤊ 0⤋
Yes, its true. I've heard it called different things. Medical Waiver Reimbursement. HealthCare Spending reimbursement. Its an employer based thing, and its pretty rare. Its kind of like when your employer gives you $ to help towards daycare... Talk to someone in your HR to see if its available.
2007-01-31 00:06:06 · answer #4 · answered by Custo 4 · 0⤊ 0⤋
My wife was paid an additional $90 per month for declining coverage from her employer while we were enrolled in my employer's plan.
2007-01-31 02:27:57 · answer #5 · answered by Rob D 5 · 1⤊ 0⤋
Yes. The general idea is to encourage people to go onto their spouses insurance.
I don't think they will give you the money if you don't have any insurance.
2007-01-31 13:18:21 · answer #6 · answered by Quixotic 3 · 1⤊ 0⤋