California employers and health insurance costs, are we getting ripped off?

Question

My employer recently stated that there was going to be a 27% increase in our health insurance premiums.
When I call the insurance company, they denied any increase. Our local agent/broker refused to discuss it with me.
When the deductions started coming out of my check it was an even 40% increase.
The California labor board will do nothing without a written statement from the broker but the broker is stonewalling.

Any suggestions to correct this obvious theft?

Answer 1

It is not 'obvious theft' in the least. The insurer would not admit nor deny any increase in premium, since that is a private issue between the insurer and the employer. Hence, the refusal of the local broker to discuss as well.

Even if the premium has remained static, it is the prerogative of the employer to charge a greater percentage of health insurance costs to the employee, unless you have a specific written labor agreement stating otherwise.

Answer 2

As stated by others already, the insurance company can not and as you found out, will not discuss the costs of premiums with a third party (you), in CA yes the cost of health insurance is increasing, and by a lot. The deductions that are being taken out of your account are your portion of the health insurance, and depending on the size of your group, the geographic loction of where everyone in your group lives, and the type of job functions they perform are the variables that go into finding out what your group rate is.

What has not been said is that if your employeer is looking for a way to keep costs down, he should look at another broker dealer who understands the CA health care challanges we are facing and someone who can think outside the box to allow for less expensive health care.

Answer 3

None. Employers aren't REQUIRED to provide you with health insurance. If you REALLY think you're getting ripped off, you can always opt out of the employer's program, and buy a private policy. If you're 30 and healthy, a private policy costs about $250 - $300 per month.

What's MOST likely going on here, is the employer has decided to contribute less towards the insurance costs. Which is their right. And the broker CANNOT discuss one party's account (the company) with a third party (a non-fiduciary employee of the company) legally.

The ONLY time there's something fraudulent going on, is if the employer is charging YOU more than the insurance costs THEM. So, if you're paying MORE than $300 per person for health insurance, THEN you can go to the department of labor, and tell them you think you're being charged more than the employer's group rate. You'll have a pretty good idea how much the employer has to pay for you, when you get your private insurance quote.

And of course, if you're unhappy with the employer, you ALWAYS have the option of finding another job.