Author Topic: Employer Penalizing Spouse For Health Insurance  (Read 6660 times)

billy

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Employer Penalizing Spouse For Health Insurance
« on: August 03, 2016, 11:54:43 AM »
I'm on my wife's health insurance only, but her job charges a monthly surcharge because my employer offers health insurance.  Her job has her verify yearly my eligibility status online through a 3rd party company.  Sooooooo, what would happen if she told her job I don't work? :)

seattlecyclone

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #1 on: August 03, 2016, 11:57:35 AM »
Seems like the sort of thing that could easily get someone fired if it was discovered.

billy

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #2 on: August 03, 2016, 12:08:47 PM »
Ya, sounds about right.

MrsDinero

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #3 on: August 03, 2016, 12:13:50 PM »

cj25

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #4 on: August 03, 2016, 12:27:49 PM »
Both my work and my husband's work charge add'l $100/month surcharges if the spouses have health insurance options through their employer.  It's due to the Obamacare tax.  We had to drop our lovely PPO with a $200 deductible & low copays and move to separate HSA insurances through our respective employers with high deductibles because of this.  I hate it.

I'm a red panda

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #5 on: August 03, 2016, 12:47:28 PM »
This is extremely common, and I would say it could cause her to get fired if they found out she lied.

BFGirl

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #6 on: August 03, 2016, 01:01:25 PM »
They switched to this with my employer last year.  Plus, a couple of years ago they did an official audit of all spouses and dependents listed on the coverage.  If she lies, it would likely be a fireable offense and possibly insurance fraud.

dcozad999

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #7 on: August 03, 2016, 03:17:10 PM »
Both my work and my husband's work charge add'l $100/month surcharges if the spouses have health insurance options through their employer.  It's due to the Obamacare tax.  We had to drop our lovely PPO with a $200 deductible & low copays and move to separate HSA insurances through our respective employers with high deductibles because of this.  I hate it.


Absolute rubbish! Spousal surcharges started showing up way before Obamacare, and insurance costs have been rising at astronomical rates since the turn of the millenium. Companies are just looking to cut spending (#benefits) any way they can.

To answer the question, my company charges $100/month spousal surcharge. You would probably never get caught, but it's not worth losing your job over.


I'm a red panda

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #8 on: August 03, 2016, 04:12:23 PM »
My husband's company has had a surcharge well before the Affordable health care act was passed.

Not everything is Obama's fault.

ohsnap

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #9 on: August 03, 2016, 04:34:58 PM »
I'm on my wife's health insurance only, but her job charges a monthly surcharge because my employer offers health insurance.  Her job has her verify yearly my eligibility status online through a 3rd party company.  Sooooooo, what would happen if she told her job I don't work? :)

Why are you covered under her policy at work?  Is $100/month cheaper than your employer would charge?  I'm all for saving $, but in that case, be glad that you have reasonable coverage through your wife's employer and don't ask her to commit fraud.

LeRainDrop

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #10 on: August 03, 2016, 04:41:02 PM »
Both my work and my husband's work charge add'l $100/month surcharges if the spouses have health insurance options through their employer.  It's due to the Obamacare tax.  We had to drop our lovely PPO with a $200 deductible & low copays and move to separate HSA insurances through our respective employers with high deductibles because of this.  I hate it.

Absolute rubbish! Spousal surcharges started showing up way before Obamacare, and insurance costs have been rising at astronomical rates since the turn of the millenium. Companies are just looking to cut spending (#benefits) any way they can.

Not mutually exclusive:  http://www.forbes.com/sites/brucejapsen/2015/08/16/how-obamacare-adds-100-a-month-to-your-spouses-coverage/#5860197d7f37

Cranky

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #11 on: August 03, 2016, 04:48:00 PM »
My dh's employer now requires spouses to buy their employers' insurance if they (the spouse) works fulltime.

Because my employer offers terrible insurance at a price that would make it silly for me to work, I don't work fulltime - and we have to submit a form showing that, signed by my employer, annually.

boarder42

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #12 on: August 03, 2016, 05:39:02 PM »
Both my work and my husband's work charge add'l $100/month surcharges if the spouses have health insurance options through their employer.  It's due to the Obamacare tax.  We had to drop our lovely PPO with a $200 deductible & low copays and move to separate HSA insurances through our respective employers with high deductibles because of this.  I hate it.

If you're maxing HSA contributions your employer likely just did you a favor. If you're not do yourself a favor and max them. Even if we max out our high deductible plan we still come out ahead over the ppo. Do the math

Slow&Steady

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #13 on: August 04, 2016, 09:44:54 AM »
My husband's company has had a surcharge well before the Affordable health care act was passed.

Not everything is Obama's fault.

My old company also charged this fee long before ACA was passed.  It was there to save the company money but was still cheaper than having 2 separate premiums, deductibles, and OOP Max.

cj25

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #14 on: August 04, 2016, 09:51:05 AM »
Both my work and my husband's work charge add'l $100/month surcharges if the spouses have health insurance options through their employer.  It's due to the Obamacare tax.  We had to drop our lovely PPO with a $200 deductible & low copays and move to separate HSA insurances through our respective employers with high deductibles because of this.  I hate it.


Absolute rubbish! Spousal surcharges started showing up way before Obamacare, and insurance costs have been rising at astronomical rates since the turn of the millenium. Companies are just looking to cut spending (#benefits) any way they can.

To answer the question, my company charges $100/month spousal surcharge. You would probably never get caught, but it's not worth losing your job over.

I work in benefit accounting.  I know all about why the fees went up.  Yes, there has always been a fee for each person enrolled, but it went up a lot with Obamacare. 

cj25

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #15 on: August 04, 2016, 09:52:31 AM »
Both my work and my husband's work charge add'l $100/month surcharges if the spouses have health insurance options through their employer.  It's due to the Obamacare tax.  We had to drop our lovely PPO with a $200 deductible & low copays and move to separate HSA insurances through our respective employers with high deductibles because of this.  I hate it.

If you're maxing HSA contributions your employer likely just did you a favor. If you're not do yourself a favor and max them. Even if we max out our high deductible plan we still come out ahead over the ppo. Do the math

What benefit is there to having a bunch of money in our HSA when it can only be used for medical?  We can't maximize it right now anyway because we're still getting out of debt. 

boarder42

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Re: Employer Penalizing Spouse For Health Insurance
« Reply #16 on: August 04, 2016, 11:51:30 AM »
Both my work and my husband's work charge add'l $100/month surcharges if the spouses have health insurance options through their employer.  It's due to the Obamacare tax.  We had to drop our lovely PPO with a $200 deductible & low copays and move to separate HSA insurances through our respective employers with high deductibles because of this.  I hate it.

If you're maxing HSA contributions your employer likely just did you a favor. If you're not do yourself a favor and max them. Even if we max out our high deductible plan we still come out ahead over the ppo. Do the math

What benefit is there to having a bunch of money in our HSA when it can only be used for medical?  We can't maximize it right now anyway because we're still getting out of debt.

HSA is tax and FICA excluded if you use payroll deduct.  thats a minimum of around 30% return on your money give or take.  be interested to know what your rates were on your loans that this wouldnt benefit you to fund over a loan. 

brings all this full circle to what benefit were you getting from being on the PPO if youre not using your doctor alot.  it would be forward thinking and future planning. it can also be used like a Trad IRA once you hit 59.5 or 65 ...

funding of accounts should go

WHAT   
0. Establish an emergency fund to your satisfaction   
1. Contribute to 401k up to any company match   
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.   this would be around 6.5% right now.
3. Max HSA   
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level   
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)   
6. Fund mega backdoor Roth if applicable   
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.   
8. Invest in a taxable account with any extra.   
   
WHY   
0. Give yourself at least enough buffer to avoid worries about bouncing checks   
1. Company match rates are likely the highest percent return you can get on your money   
2. When the guaranteed return is this high, take it.   
3. HSA funds are totally tax free when used for medical expenses, making the HSA better than either traditional or Roth IRAs.   
4. Rule of thumb: traditional if current marginal rate is 25% or higher; Roth if 10% or lower; flip a coin in between (or see   
   http://forum.mrmoneymustache.com/investor-alley/deciding-between-roth-and-traditional-ira-based-on-marginal-tax-rate/
   if you want even more details on that topic).  See also
   https://www.bogleheads.org/forum/viewtopic.php?f=2&t=182081,
   http://forum.mrmoneymustache.com/ask-a-mustachian/case-study-overwhelming-student-loan-debt-how-would-you-get-started/msg868845/#msg868845
   and other posts in that thread about exceptions to the rule.
5. See #4 for choice of traditional or Roth for 401k   
6. Applicability depends on the rules for the specific 401k   
7. Again, take the risk-free return if high enough   
8. Because earnings, even if taxed, are beneficial   

stole this from MDM but its pretty solid advice