Canan employerprofit from employee insurance premiums?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Canan employerprofit from employee insurance premiums?

There is an annual increase from the insurance company for the group health plan. The insurer has cited an increase of approximately 37%. The company has blocked out the actual cost of the premium on the insurance form and is stating an increase of 83%. Is this legal?

Asked on November 14, 2010 under Employment Labor Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

It depends on the circumstances. The company could not tell you that the increase was 83% if they also represent that the increase in cost was all due to the insurer raising the premium, when in fact the insurer raised it only 37%  and the company is pocketing the extra 46%. On the other hand, since companies do NOT need to provide health insurance, and if they do, they can have their employees pay more or less of the premium, the employer could legitimately decide that employees need to pay a larger share. The key is, they cannot lie or deceive the employees as to where the money is going, but if they want to charge employees more and subsidize  them less, they can do that.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption