Assuming that my health insurance policy is not underwritten for 100% participation....
Is there anything illegal about allowing an employee to opt out of a non-contributing health insurance plan. Our plan provides FREE health insurance for employees and their eligible dependents. I have a few employees who have declined coverage (even though it is FREE) because they have health insurance already and do not want to deal with co-insurance.
I am being told that employees cannot elect to opt out of a non-contributory health insurance plan. If I am offering it to ALL employees, I am clearly not discriminating under ERISA.
I have also been told that if an employee does opt out, they should be receiving the premium paid to them? Is that true.
Any assistance would be appreciated. Thanks.