What can be done about an employer who overdeducts group health insurance premiums?

Question

The employer fouled up and included the rate sheet for our last premium increase. True rate for a 55 year old male was 61.39 per month. Employer deducts 140.00 per month and tells us that is our "half" of the premium.

Labor board fails to spring to action, stating "it's a benefit and not our jurisdiction". California Department of Insurance says they can't do anything to him because , even though he's brokering insurance without a license, they can't figure out how to pursue it (honest to God the mini-bureaucrat told me this).

Californians deserve a government that stand up for them, not just an overtaxing entity.

Note to acer:

I have the rate sheet in my files, still . Cal-choice Healthnet= 61.39. Not my info, this came from the Calchoice organization( the guys my boss buys the coverage from).

Note to acer:

I have the rate sheet in my files, still . Cal-choice Healthnet= 61.39. Not my info, this came from the Calchoice organization( the guys my boss buys the coverage from).

To put an end to it, just email me and I'll send you a copy of what my ex-employer gave me.

Today I started with another company. Health insurance (my portion $30.00 per pay period).

It can be done.

Answer 1

Maybe it's time to bring the Governator into it ...? ;-)
I would be very interested in finding out what you come up with. How about telling "Inside Edition" or some kind of investigative local news show? I bet they would find out quick.

Good Luck !!

PS - These other answers bring up a good point, about rates. My plan is $200/mo. Better check out all the facts, just to make sure you're not too hasty in your fault-finding. I once copied an email I wrote to 3 local TV news stations, as well as the original business I was not happy with and got instant results - twice !

Answer 2

I would bet my entire life savings that the premium is not $61.39 per month for a 55 year old male. No way, no how.

I've seen rate breakdowns before, and quite likely you're only seeing a portion of the information. Usually they are broken down so that employers can make the choice to cut out a portion.

For example, there might be separate rate components each for dental, prescription, vision, major medical, etc. Then you'd take the rates from each sheet and add them together.

I think you're getting yourself worked up over nothing - $140 a month does sound like half (or even less than half) of what coverage would run for a 55 year old male.

Answer 3

The rate that you see on the rate sheet may be the rate that person would pay alone, but not the rate that the employer is paying. Employers deduct the same amount for each person, even though not all the employees are the same age and gender. In other words, the employers can deduct $140 and call it "half", if the average premium is $280, even if some employees would have had a lower premium as individuals.

Answer 4

There is no WAY that the RATE is $61 a month. That might be your SHARE, or it might be PER PAY. In any case, that rate on that paper is NOT BINDING unless you have a contract between you and the employer stating something like "employee's share of health insurance is $61 per month".

As long as the employer isn't charging more than THEIR cost (which you darned well know is at LEAST $300 a month), they aren't doing anything illegal.

Are you sure that paper doesn't say $61.39 per PAY PERIOD? And maybe then the extra $20 is dental and vision insurance??

Bottom line - if they aren't doing anything illegal, if you don't like it, you can find another job. Those are your options. And I'm not seeing anything illegal here.

Answer 5

Oh di mama. Do you REALLY believe that your employer can provide a comprehensive health care plan for just over $60 a month ??? Please get real. Even scanty plans cost an employer $600-$800 per month, and probably more in California, due to the higher costs of living there.

I suggest that you revaluate the 'rate sheet' you got to insure that it represents your employer's actual costs for healthcare.

If you DO discover that this represents his true cost, please forward the information to me. I know at least 20,000 corporations who would like to avail themselves of such a rate.

(My guess is that your 'rate sheet' showed the value of the increase ONLY, and not the full premium for the coverage.)

The following URL provides rates from a broker for CalChoice HealthNet. Your boss isn't getting a deal much different from what is offered here. Read carefully.

Answer 6

First, make sure the rate sheet is correct. The Department of Commerce and Insurance is the governing body. My thought is that in your initial call to the insurance department, you got an idiot. Make your call again and again until you find intelligent life. Rates must be filed with the state and they can't charge more than what is filed with the state.

Answer 7

My health insurance costs me $320 per month per person. I own a small business. That's a group plan with a high deductible for an individual. I shopped around for the lowest cost before I decided on that plan.

I don't believe that that $61.39 per month figure is the total cost of health insurance per month.

P.S. Maybe it would be good to sit down with an HR person in your company and discuss this?