An employer cannot discriminate against an employee based upon their age (among a multitude of other factors). However, that does not necessarily mean that an older employee who compares what they are contributing towards their employer based health insurance with a younger co-worker of the same coverage level will find themselves paying the same amount. This may initially be perceived by the older employee as though they are being discriminated against but this is almost certainly not the case.
If your employer's group health insurance rates are age based rates then there is a different rate for each year of age for a covered employee. The community rating requirements of ObamaCare have pushed many health insurance carriers towards this age rated basis though some health insurance carriers still develop a "composite" rate for a group after quoting them on an age rated basis (composite rates are one rate for every employee with Employee Only, Employee+Spouse, Employee+Child(ren) or Family coverage regardless of the employee's age).
This is how things work under community rating. First of all, there can be no more than a 3 to 1 ratio between the rates for the youngest and oldest employees in the group. To keep things simple let's say the monthly rate for a 25 year old is $200 per month then the monthly rate for a 60 year old would be $600 per month. Then let's say that your employer pays 50% of the employee only rate which leaves the other 50% for the employee to pay. Under this scenario the 25 year old's cost would be $100 per month ($200 x 50%) and the 60 year old's share would be $300 per month ($600 x 50%). Even though the dollar amount paid by each employee differs significantly the employer is treating them the same in that the employer is contributing the same percentage amount towards each employee's coverage. Therefore, there is no discrimination.
This is one of the effects of ObamaCare that is increasingly being seen by employees as their old health insurance plans and rate structures are being replaced by ObamaCare compliant plans and the new community rating method.
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If your employer's group health insurance rates are age based rates then there is a different rate for each year of age for a covered employee. The community rating requirements of ObamaCare have pushed many health insurance carriers towards this age rated basis though some health insurance carriers still develop a "composite" rate for a group after quoting them on an age rated basis (composite rates are one rate for every employee with Employee Only, Employee+Spouse, Employee+Child(ren) or Family coverage regardless of the employee's age).
This is how things work under community rating. First of all, there can be no more than a 3 to 1 ratio between the rates for the youngest and oldest employees in the group. To keep things simple let's say the monthly rate for a 25 year old is $200 per month then the monthly rate for a 60 year old would be $600 per month. Then let's say that your employer pays 50% of the employee only rate which leaves the other 50% for the employee to pay. Under this scenario the 25 year old's cost would be $100 per month ($200 x 50%) and the 60 year old's share would be $300 per month ($600 x 50%). Even though the dollar amount paid by each employee differs significantly the employer is treating them the same in that the employer is contributing the same percentage amount towards each employee's coverage. Therefore, there is no discrimination.
This is one of the effects of ObamaCare that is increasingly being seen by employees as their old health insurance plans and rate structures are being replaced by ObamaCare compliant plans and the new community rating method.