Employer sponsored health care plan increase

[eldude]

Georgia

My company just increased my employer sponsored health care monthly premium by 100%, when I checked outside my company for an equivalent plan I was told I could have the same plan for 50% of what they were charging me prior to the increase. Is this legal?

 

[ecmst12]

Why wouldn't it be legal? Maybe you are exceptionally healthy, group insurance plan isn't (and can't be) rated on an individual basis. Get the individual plan and cancel your employer plan (at open enrollment) if that's what you want to do. Better read the fine print though and make sure the plans really are the same in every way.

 

[las365]

Sure it's legal for you to buy medical insurance from a carrier who will charge you less than you have to pay for insurance through your employer's plan. Go for it.

 

[cbg]

Group insurance is based on the WHOLE group experience and census, not on just you. Individual insurance is based on just you. So naturally the rates are going to be different. OF COURSE it's legal for your employer to increase your rate and OF COURSE it's legal for you to purchase other coverage.

However, there are a few things you need to remember. Under IRS regulations, if your employer group plan is subject to Section 125 regulations (and it almost certainly is) you can ONLY drop coverage during open enrollment, or when you have a qualifying event. If this is your open enrollment period, no problem, you can drop coverage through your employer with no questions asked. But if it's not your OE period, you will need to provide written verification from the other insurer that you have already obtained other coverage and the date on which it started. Without that (and without whatever other forms your employer may require for a mid-year change), your employer not only need not, but must not, allow you to drop coverage.

Usually you only have 30 days to make this change, so you don't want to waste time. Call your HR office and confirm whether it is OE and if not, what documentation they require to do a mid-year change.

 

[OHRoadwarrior]

The company my spouse was employed by used to change companies almost every year because upon renewal, the policy expenses would rise astronomically due to covered members in the companies policy area (employees/family members) having cancer and other expensive treatments.

 

[sandyclaus]

Georgia

My company just increased my employer sponsored health care monthly premium by 100%, when I checked outside my company for an equivalent plan I was told I could have the same plan for 50% of what they were charging me prior to the increase. Is this legal?

Perfectly legal.

If you don't want to pay the increased premiums, then you are welcome to go outside your company and secure your coverage there instead for half the price. However, as was suggested, you should most definitely do a comparison of the plans vs. the premium and make sure that the less expensive plan really does provide you with the same coverage - or at least the coverage you need.

 

[eldude]

Great advice, I'm am waiting on my new policy to be approved. I will then cancel this one while it is in open enrollment period. Thanks again

 

[ecmst12]

Make sure you find out WHEN open enrollment is before you sign anything or you might end up paying double for a while. Usually open enrollment is in October or November, for changes to take effect 1/1. Second most common time is for changes to take effect 7/1.