Opting out of Group Coverage and the new laws

Posted in the Health Insurance Forum

Angela

Fayetteville, AR

#1 Mar 13, 2013
My husband has worked at this company for 6 years. Every year the insurance has went up approx 10%. It started out at $80 per WEEK with no deductable or co pays and is now $130 a WEEK with a 500 per person deductable and 20% co pays. We don't use it much and are paying $6760 a year for it, besides deductables and co pays. I have found that we can buy our own policy for much less, it wouldn't cover certain things such as maternity and things like that but we are past that age and don't need it. There are others who want out, as with their incomes $130 a week is a big chuck of their pay.

His employer says they can't drop the coverage because the deadline has passed to do so, but no one seen the new plan until after they say the deadline passed (they say March 1st was the deadline and no employee got a copy of the new plan until about March 5th). The deductable doubled and rates went up $15 per week and co pays went up.

Is that legal to say you have to participate for the whole year? How can that be legal. I don't think my house or car insurance could go up and then them tell me I have to keep it without the option of knowing the rates were going up.

Also, next year under the new law, will this company be fined, as what the employee pays out for the premiums is about 14% of their pay, for the average employee. My understanding is under the new laws it should be under 9.5%. The company has between 75-100 employees.

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