Can I Pay an Employee More for Not Taking Health Insurance?

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.

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if an employer gives extra pay to employees for turning down health coverage, does he have to offer it to everyone?


I don’t know the answer to this one, good question.


So, if a company has and does offer medical insurance and you are covered by spouse insurance – can they increase my salary if I opt not to get my employer insurance. This was part of my salary benefits. Please advise is my employer can increase my salary if I opt NOT to get medical insurance…


It is more complicated than that. The rules say an employer has to offer coverage or pay a fee if they have to comply with the mandate. The rules don’t say the employer has to offer cash instead of health benefits if health benefits are turned down. And, in general, the employee can choose how they get covered.

You would need to talk to your employer to better understand your options, there are too many complexities to make general overarching statements on every aspect of this, but the above is the gist.


this was a very obscure and difficult question to find an answer on.


We updated the answer to clarify. To summarize, employers can offer increased compensation rather than health insurance… but that compensation can’t be be used for purposes of complying with the mandate.

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