Health insurance opt-out?
We are considering paying an incentive to employees who opt out of our group health coverage. Does anyone offer this option at your company?
I'd like to hear the pros and cons of offering this and also would love to see the parameters you use for an incentive payment.
Thanks - Melissa
We offer a Medical Opt Out Credit of $260 per month for employees that waive medical coverage and provide Proof of Coverage as a new hire and during Open Enrollment every year.
We require that their proof of coverage must have their name on it, whether it be their insurance card, recent explanation of benefits that has their name or a screenshot of the primary insured insurance portal showing those covered u set medical.
If they do not complete this during either their new hire or open enrollment event, we allow them to send in their proof of coverage and they will receive it on the next pay period after it has been approved. However, we will not apply it retro actively to their original effective date since the required task was not completed.