Cashing Out of Employer’s Plan

I have never had my employer’s health benefits because I am a retired Marine and covered 100% under the VA health system.  I have been a full-time, salaried employee for 15 months now.  A coworker recently told me that the company I work for has to pay me the money that they would normally pay to the insurance company if I was enrolled.  Basically if I had their health insurance and their contribution was $200 a month for my policy, then they would owe me that $200 since I am not enrolled.  Is there any truth to this, or is he just blowing smoke?


Skeptic in PA

Dear Skeptic in PA

Your co-worker is not lying, but he’s closer to the blowing-smoke end of the spectrum than not.  It’s true that some employers will give you the dollars they would have spent on your health insurance if you do not enroll.  It is up to the employer to make that choice, and many do not “cash out” their health benefit for employees who have coverage from another source.  Your employer apparently has not offered cash to you for the favor of not taking their plan.

Even so, you could ask your employer if they would consider offering this.  My guess is that they made a deliberate decision not to do so.

Linda Riddell

About Linda Riddell

A published author and health policy analyst with 25 years’ experience, Linda Riddell's goal is to alleviate the widespread ailment of not knowing what your health plan can do for you.