In an effort to save money, my California group client would like to pay $100/month to each EE (about 5 ee's of a 90-ee group) who refuses medical or dental benefits because they are covered by their spouse's (other employer) group insurance. Currently, ER pays 100%, about $400 per month for EE medical and dental, although EE is also covered by spouse's equal-or-better-benefit group coverage. Most California carriers don't care what the ER does so long as ER enrolls 100% of Eligible EE's (Eligible EE being a full time EE without other group coverage). ER is not incentiveizing EE for declining group insurance. The $100 paid to the declining EE would be additional compensation.
Any problems with this kind of an arrangement?
Your thoughts and cautions!
John

No advice here because I'm not knowledgeable in this area but just relating personal experience. A 'large telecommunications firm' I formerly worked for (self-insured) offered this option exactly except as far as I know they didn't care if you were covered otherwise. If you elected 'waive' you got the extra 100 bucks a month.

This is a very common thing to do inside a Section 125 Plan. The employee elects between tax free insurance coverage and taxable cash. Elections are irrevocable for the plan year without a status change.