For medical insurance, is it ok to offer one plan, such as an HMO, at no cost to the employee and other plans, such as PPO ones, at an employee contribution rate?
Yes, employers can set contributions using a base plan and a buy-up plan (or multiple buy-up plans). For example, if an employer offers an HMO plan and two PPO plans, the employer can elect to pay 100% of the HMO premium for an employee and require the employee to pay the difference to elect either […]
Yes, employers can set contributions using a base plan and a buy-up plan (or multiple buy-up plans).
For example, if an employer offers an HMO plan and two PPO plans, the employer can elect to pay 100% of the HMO premium for an employee and require the employee to pay the difference to elect either of the two PPO plans.
What an employer can’t do is set different contribution levels for different sets or classes of employees. This is considered discriminatory under ACA regulations.
