What to do if my employer canceled insurance for the entire company but reimbursed achosen few employees?

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What to do if my employer canceled insurance for the entire company but reimbursed achosen few employees?

Employer has cancelled group health insurance for entire company. Anyone that was covered under the company group plan is to find their own. Certain employees were told (but not all) were told to bring in their monthly bills from their individual plan that they would be reimbursed. Is this legal?

Asked on February 11, 2011 under Employment Labor Law, Ohio

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It certainly does not sound right but technically your employer is not paying directly for the insurance; only offering an additional benefit for those that they choose.  Is it fair?  No.  Is it illegal?  Maybe not.  I would give a call to the state Department of Labor and run this by someone who takes complaints.  I would also call the state Department of Insurance to make sure that the employer is complying with state laws regarding insurance coverage, etc.  The manner in which they are funding, if you will, the select employees plans may not be proper but looked at it from a different perspective it is like they are being given raises when the rest are not.  Maybe this approach of unfair compensation or raise allocation is one to discuss with a legal professional in your area.  Good luck.


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