Can my employer just up and cut my health benefits because he doesn't have the money?

Question

When I was hired in, I was told that my health benefits would be paid for after 90 days. Two years ago, there was an increase on the blue cross, so we started to pay $20 a paycheck to help cover the increase. Now, my boss said he can no longer cover us starting October 1st 2007. I have heard to ask for a raise, but how can you when the employer says they are having financial problems? I work in the floral business in Michigan so it is not a big company.

Answer 1

1. If you do not have a contract (individual or union) that requires the employer to provide health insurance AND you work in a state that does not require the employer to provide health insurance, then the employer can stop paying for health insurance. However, you may have the right to continue the insurance at your own expense (see answer relating to COBRA).
2. If you have a contract (individual or union) that requires the employer to provide health insurance, then the employer generally cannot violate that contract. Also check if there is a state law requiring employers to provide health insurance.
3. You can ask for a raise at any time, but, you are not likely to receive a raise when the employer does not even have enough money to afford health benefits.

Answer 2

Employee health insurance is a whopper of an expense for the employer to pay. Whether the business is in trouble or they just not gona pay is up to the boss. He owns and runs the business and profits the most from the bottom line.
If you need to see a doctor better go before the deadline date. .

Answer 3

Unfortunately,yes he can stop benefits for health care.These benefit are just that,benefits.They are not required by labor laws.
Additional: I believe under a law called "Cobra",if you have been covered under the companies health insurance and he suspends coverage completely,the company will by law have to allow you to stay on their health insurance plan at their group rate but you will have to pay the complete total premium.I am not 100% sure about this,maybe someone else will know for sure.
The link below may give you the answer,it appears that a company with 20 or more employees will have to adhear to Cobra laws.

Answer 4

If you don't have an union contract or some other employment contract with the employer stating what benefits will be provided and and how much of a contribution the employer makes, then the employer basically has no guide line to follow.

If the contract is verbal, this could mean a trip to court. My advice it to have all your facts together and then contact a labor lawyer who is familiar with the laws in your state and city.

Answer 5

Yes, your boss can cut your health benefits if it becomes too expensive to keep them. Your option is to stay on or go. As far as a raise is concerned, it is possible that he could pay for it in what he saves on health insurance.

Answer 6

yes well I would say that it is time to find another job and I know this is hard and alot of businesses are doing this cutting health benefits for employees . I say it is high time this country though about universal health care for everybody .yet I have heard not one candidate for president talk about it . good luck dear .

Answer 7

Yes your'e employer can do that.

Michigan's unemployment rate is at an all time high of 7.5 percent. So I wouldn't quit your job until you find another ahead of time.

Be advised that they are not even hiring truck drivers out of Michigan anymore.

I hope and pray for you and your family,
Former-Michigander

Answer 8

Unfortuately, COBRA coverage is not an answer for you since the employer is dropping the coverage, there is no coverage for you to continue. You will have to get individual coverage, but it will not be cheap. I suggest you go to an Independant Agent and let them do the shopping for you based on your financial and medical picture.

Answer 9

Yes, he can. However, you don't have to stay there. Employers offer benefits to compete with other companies to gain and keep employees. Looks like it is time for you to move on.

Answer 10

hey there.i'm not yet working but i'm trying to use my common sense here.i personally think that yor employer couldn't just cut off your health benefits or whatever benefits you have just for the reason that he/she isn't financially stable.for me that reason isn't valid enough to cut off your benefits because it comes sort of like a package deal.hey,but wwhy not start looking for a job in a big company or something that could compleately provide your benefits.....
-w!nk*-