Can an employer pay an employee .80 cents more an hour if they don’t accept the employers health plan, but are still covered by a spouses plan? I was hired and told they will pay me more per hour if I don’t enroll in there insurance. Now they want to take it away.
Employers can make healthcare arrangements to help employees with health insurance payments or simply just choose to pay an employee more taxable income. It's a choice left between the employer and employee, but there are a few important rules to follow.
Under the Affordable Care Act employers can't reimburse an employee for non-group health insurance and treat it as offering benefits and complying with the mandate. So an employer who must comply with the mandate can offer increased compensation, but can't treat it has a qualifying arrangement unless they offer a group plan.
An employer can be fined for reimbursing the cost of non-group coverage and can be fined if they have to comply with the mandate and an employee get's cost assistance on the Marketplace.
The bottom line: If an employer has to comply with the mandate the employer must offer a group plan and the employee can't get cost assistance.
Employers should read our page on employer health care arrangements for more information, employees can know that accepting increased compensation is fine as long as it's not being treated as a reimbursement for health insurance.