Health Benefits to 1099 contractor

What is the name of your state?What is the name of your state? Missouri

Can a small business (21 W-2 employees) offer health insurance to a 1099 independent contractor if not offered to all contractors? This particular contractor would reimburse 100% for his health insurance. Also, if he was allowed to participate, would employer have to pay for his insurance since they provide 100% of the cost for regular w-2 employees?

I am trying to determine if employer opens itself up for descrimination law-suit by giving insurance to 1099 employee and not paying for the cost.

Thanks.

While it is not illegal, it is very likely prohibited by your insurance contract.

This isn't a discrimination issue. It's (a) a contract issue between the employer and their group health insurance carrier, and (b) a federal ERISA reg's compliance issue.

Unless the contractor meets the definition of an eligible employee as described in the Plan Document, no, you may not offer him coverage. If he DOES meet the definition (which I find extremely unlikely*) or you amend the Plan so that he does, then you must offer participation to ALL employees who meet that definition, which presumably means all your other IC's as well.

* A bonafide IC by definition is NOT an employee, thus they are ineligible for participation in your benefit plans which I'm certain specify that only employees are eligible.