Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
If the health insurance plan is a part of a labor negotiation, terminating the plan would violate the bargaining agreement. It is possible that the employer has the right to change insurance companies. If it is a plan provided by the employer all rights to discontinue the coverage would be with the employer. When a plan is discontinued COBRA benefits will normally be available for those losing coverage.
Yes. Absent a collective bargaining agreement with a labor union, which are increasingly rare, an employer makes a voluntary decision to offer health insurance and other benefits to their employees. There has never been a legal requirement in our nation for an employer to offer health insurance to their employees. The Affordable Care Act contains provisions that can apply tax penalties to employers above certain group sizes for not offering health insurance or the approved level of coverage and it offers inducements in the form of tax credits to smaller employers to provide health insurance but even this law does not force an employer to provide health insurance to their employees.
So, generally speaking, an employer is free to not offer health insurance to their employees or to terminate an existing group health insurance plan that they have had in effect. Indeed, the higher costs imposed by the requirements of the Affordable Care Act have already had the perverse effect of pushing some employers to the decision to cancel their group health plans.
.JPG){kind=avatar}
So, generally speaking, an employer is free to not offer health insurance to their employees or to terminate an existing group health insurance plan that they have had in effect. Indeed, the higher costs imposed by the requirements of the Affordable Care Act have already had the perverse effect of pushing some employers to the decision to cancel their group health plans.