2 extra insurance weeks a year

[zeuss]

What is the name of your state? Michigan
A factory pays you for your vacation all in one check when your anniversary comes around. They also take out employee weekly insurance payment out of this check. So if we were to use a day at a time throughout the year, we are paying for our health insurance premiums twice. In order to prevent this we would have to take a week at a time so we would only be paying for our ins. once that week. When you have two weeks of vacation pay coming, we are actually paying for two extra weeks of insurance premiums. The company explains that this is just the way it's always been. Is this legal?

 

[moburkes]

No you're not. Your insurance is calculated on an annual basis. Then it is divided by the # of pay periods, including the "vacation" check.

 

[zeuss]

ok, this makes sense. But when it I went from one week of vacation to getting two weeks my insurance weekly premium amount did not change. So am I paying for an extra week of insurance with this instance?

 

[moburkes]

Nope, because your insurance premium probably increased during that time frame, and your employer only asked you to pay that much more (1 weeks pay) towards the higher premium.

 

[zeuss]

My weekly deduction for insurance has not changed for the past 2 years but my vacation time earned has. I have gone from one week vacation to 2 weeks vacation but the premium amount has never changed since I started paying for it 2 years ago. So if I do the math by these figures am I paying extra? It looks like it to me. I am not the only one the company does this too so if I am paying extra then the company is possibly pocketing alot of money from the other employees too.

 

[moburkes]

No, they are not making money off of you. The cost of health insurance has gone up dramatically. Where I work, for example, our insurance has gone up by almost 50%!

If the only increase that you have seem for YOUR portion of YOUR health insurance is 1/52 or 1/26th, then you are very lucky.

How many weeks do you work a year? What is YOUR weekly portion of your health insurance? Answer those 2, and I will be able to give you an answer with figures so that you can understand it better.

 

[pattytx]

Take your share of the annual premium. Divide it by the number of paychecks you get in a year. If too much is being deducted over the full year, (keep copies of all your pay stubs), make an appointment with the Benefits Administrator regarding making adjustments.

 

[cbg]

Keeping in mind that if the employer's premium cost goes up, so does yours, and it doesn't necessarily happen on January 1.