Blue Cross Blue Shield Alabama

[patelrg]

What is the name of your state (only U.S. law)? Alabama;
Hello, I am a family physician and I have a private practice setup with a partner. We have health insurance representatives come in and attempt to sell insurance to our employees. I allow the employees to choose the plan, and I pay for it out of the corporation's pocket. The payments are made post-tax. I recently read the manual for the individual plan, and noticed that it says that your employer may not sponsor or endorse the employee. This also means that the employee may not pay for it through Section 125 of the Internal Revenue Code. I have read up as much as I can on this and am confused. Right now, the money for all of the employees goes electronically automatically to Blue Cross Blue Shield of Alabama. The Blue Cross people have said nothing about it, yet. The drug representative said nothing about employers not being allowed to sponsor employees and I did not sign anything. I, now, am in a predicament because I have employees who depend on my paying for them and yet, I do not want to be held liable and risk my practice. What should I do?

[cbg]

Are you saying that you are paying for individual polices for all your employees?

[patelrg]

Yes, currently I am paying for all my employees health insurance through Blue Cross Blue Shield.

[ecmst12]

You are probably not doing anything wrong since you are paying with post-tax funds. But you might be able to save money and have better coverage by going with a group policy. You should have a talk with an agent that handles other businesses of your size to go over your options. But you are not 'sponsoring' your employees with the current setup, you are merely paying their premium.

[patelrg]

However, in the handbook, it says that the employer is not allowed to pay for the employee either. Below is a link to the handbook pdf and it will clarify my concerns. Thanks again.


[url]https://www.ibcbsal.com/plans/iblue/pdfs/booklet750.pdf[/url]

[ecmst12]

I would definitely suggest you talk to the insurance company about your concerns.

[cbg]

Better yet, an insurance broker that handles group policies.

[patelrg]

Will they be able to sue because of my actions? I did not know about this policy until I checked it, at my own discretion. See, they have not done anything about this for over a year now and I am afraid that if I suddenly stop paying or inform them, they will file an action.

[cbg]

Will who be able to sue?

[patelrg]

The insurance company might file an action against me (employer) or my employees.