Salary decrease for insurance

What is the name of your state? OHIO

We are trying to get insurance benefits from my husbands employer who is stating that in order for him to get the medical insurance he has to have his salary decreased $5000.00. Is this even legal? Any help would be greatly appreciated.

1.) Does your husband's employer offer health insurance benefits right now? Or are you trying to get him to begin offering it?

2.) If they do offer benefits, what does the plan document say about eligibility? What classes of employees are covered? (Full time? Part time? Office only? Shop floor?)

3.) Does your husband belong to one of the eligible classes?

The answer to these questions are absolutely necessary before anyone can answer your question.

His employer currently does offer health insurance to all full-time employees. He is a full time employee and eligible for the benefit. I had lost my job and we need to get the health insurance as he is the only one working at this time.

How long ago was your insurance cancelled? (It is not always the last day of employment.)

My insurance was cancelled on December 31, 2004.

Thanks.

Unless the plan document specifically states that only full time employees who are making between x and y are covered, and your husband would have to take the pay cut in order to be between x and y, this is not legal. If your husband qualifies as an eligible employee as it is without the pay cut, since you are still within 30 days of the last day of your coverage he MUST be allowed to join the plan.

The problem is, the law that governs the administration of health plans is long, complicated and bulky, and I wouldn't have a clue where to point you to give you something you could point to, to prove it to him and since it's Friday, by the time I could find out it would be just about too late.

I very strongly suggest that you contact the Federal Departmetnt of Labor immediately if not sooner and as them for guidance. There is a 30 day window under which you are eligible to join the plan, and you are perilously close to the end of that. It's after hours now but you will want to call them at the earliest possible moment Monday morning.

If it is financially feasible, you might even want to consider taking the pay cut temporarily just to get on the plan, but continue to file a complaint with the Federal DOL over the employer's violation.

Good luck.

Is it possible that the "salary decrease" to which your husband's employer is actually referring is the "salary reduction" to facilitate pre-tax premiums under a 125 plan?

In other words, does the "salary reduction" equal the amount of premiums that would be deducted pre-tax? Or would your husband have to take the salary decrease and have the remaining salary "reduced" for the pre-tax premiums? It's a stretch, but it's not impossible.

Hmmm. Good thinking, Patty, I hadn't considered that possibility.

Poster, if Patty is correct, then it is legal. You might want to clarify that with the employer before making that call to the DOL.