Employers nowadays have to opted to pay additional amounts to its employees who have turned down enrolling in the health coverage which its employers have offered. Regardless, these opt out payments still have pose some form of consequences for employers because it may affect whether the coverage that is being offered by the employer is affordable or not on the grounds of the Affordable Care Act. How to receive compensation for declining health insurance is gradually becoming a norm nowadays despite the problem it creates for employers.
The fact is your employer is going to provide health insurance for all of its workers but you do not necessarily ave to buy it. The truth is even while working for an employee, you can also purchase your own insurance and during open enrollment, people seize the opportunity of changing or signing up to a health insurance. However, every business has its own specific enrollment period and there are employees who would fancy quitting the health insurance group plan sponsored by their employer and move to the individual health insurance plan.
Compensation For Declining Health Insurance
If this health insurance plan at work pays up to one hundred percent then the employer might force an employee to take up the plan or an employee can actually take up the plan if the plan was involved in a union agreement or part of the employment. However, there are scenarios that might cause you to want to opt out of the health insurance plan that your employer is providing and these scenarios includes;
Offering Health Insurance Coverage That Doesn’t Boost Premiums
Almost every employer pays premium but the amount of premium that gets subsidized actually varies from one employer to another. If your employer doesn’t pay premiums then you are better off buying an individual health plan with another health insurance provider.
Offering Health Insurance Coverage But You Think The Plan Is Lousy
Under the Affordable Care Act, it is compulsory for a health insurance plan sponsored by the employer to cover at least sixty percent of an employees medical bills and the employee is also expected to pay at least forty percent of an employees health care expenses through co-payments an deductibles but it is up to what you have in your plan that would determine if you meet up with these requirements. A similar situation could be your employer offering you a health insurance plan which you find very expensive.
The bitter truth is declining your employers health insurance plan would put a stop to whatever benefit your employer offers that would help in covering cost. Furthermore, if your job based insurance meets minimum requirements and is also considered to be affordable then you are not qualified for premium tax credits regarding a marketplace health insurance plan.
You Have Lost Your Job Or About To Lose Your Job And You Are Offered COBRA
Thanks to COBRA law, you are given the rights to continue with the insurance plan you had while you were still working but in this case, your employer doesn’t have to subsidize your premiums anymore. This is the point where you would have to do better on your own and since you have lost insurance coverage because of the loss of your job then that can actually be considered as a qualifying event which leaves you entitled to a special enrollment period.
This simply means that if you lost your job in June which is long after the enrollment period then you have qualified to have a special place in the next enrollment period for the next sixty days.
Before Deciding, Compare Health Plan Benefits
When you decide to choose a health insurance plan to be on your own, one thing that you should look out for are the health benefits and also check if the hospitals and health care providers are also part of the benefits that you seek. Decisions should not be based on price alone but all of the benefits that comes alongside getting insurance at work should be factored in as well. One of such benefit is the fact that your employer helps to cover up with health insurance and cost which is actually a tax free benefit.
You should also consider the fact that some employers also offer lower premiums if you keep healthy behaviors such as getting a gym membership and quitting smoking. You should also consider these incentives before going ahead to make a decision.