If my employer just told me it didn’t take out the correct amount for health insurance for the past 18 months and it wants me to pay it back, do I have to?

Get Legal Help Today

 Secured with SHA-256 Encryption

If my employer just told me it didn’t take out the correct amount for health insurance for the past 18 months and it wants me to pay it back, do I have to?

The benefit company billed my employer for the extra premium and it was paid by the employer. It just realized several people were not paying the full employee premium. Future deductions will be correct, but it indicates that we will need to pay back premiums, in my case about $6500.

Asked on February 24, 2012 under Employment Labor Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

What was the agreement at the time you selected or opted into the insurance, between you and your employer? That is, how much were you supposed to pay? If you  paid too little, for any reason, the company may enforce the terms of the agreement and recover the shortfall from you. (An "agreement" does not need to be a formal written one; it can be the oral agreement or understanding, or the agreement evidenced by the health insurance policy documents, rate charts, intraoffice memos or emails, etc., as to what your employee portion of the premium would be.)

The company may not simply take the money out of your paycheck, without your agreement. However, if you do not agree to some repayment scheme the company finds acceptable, it could sue you for the money. It may also choose to fire you (unless you have an employment contract protecting or guarantying your employment in some way).


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 with SHA-256 Encryption