Question
What is the name of your state? NC
Example:
Insurance Carrier Monthly Premiums:
Employee Only - $300
Employee + Spouse - $700
Employee + Child(ren) - $600 (same amount for EE w/ 1 child or EE w/ 10 children)
Family - $900 (again, same amount for EE w/ 1 child or EE w/ 10 children)
EE Monthly Payroll Deductions:
EE - $90.00
EE + 1 dependent = $150
EE + 2 dependents = $210
EE + 3 dependents = $270
EE + 4 dependents = $330
EE + 5 dependents = $390
EE + 6 dependents = $450
EE + 7 dependents = $510
You get the picture: for each dependent the employer takes an additional $60/month from the EE's paycheck. Is this legal??? Especially since the employer pays the same amount to the carrier, regardless of the# of children?????
This is a small employer with about 25 full time employees so I don't believe the DOL would get involved. I'm not sure if this is covered under Small Group Reform and taken up with the NCDOI or if it would be considered some form of discrimination against employee's who have more children than another employee.
Answer
I'm not aware of any law that prohibits it. After all, the more dependents on a policy, the more usage, right?
Answer
Not necessarily. that's why renewals are based on claims experience. One employee may have 5 kids who are perfectly healthy and go to the doctor for normal routine visits. But another employee may have one child with a medical condition that requires regular visits to the hospital. We're talking about possibly a couple thousand dollars in claims versus a couple HUNDRED thousand**************.. My instinct tells me that this is a form discrimination but I can't find it anywhere in black and white.