Can my employer decide to discontinue paying my healthcare premium?
Monday June 8, 2009
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I’ve been employed with the same surgery center for 13 1/2 years. I was hired as a nurse manager with full benefits, including healthcare insurance. I am a salaried employee. In April my boss informed me that he no longer could afford to pay my entire monthly premium, and I now have to pay half of it myself. Can he do this if this benefit was part of my hiring negotiation?
Josh
Although the employer initially paid the entire premium for your health, there is little an employee can do when the premium payment by the employer is reduced. Unfortunately, healthcare insurance rates increased, and some employers no longer pay any portion of the cost of health insurance for their employees. It is clear this decision is not one you were looking for, but having some of the premium paid by the employer is better than having no employer contribution.
This reduction in benefit is governed by the specific policy adopted by the employer. Additionally, it is regulated by language in the employee handbook that is termed a “disclaimer.” Basically, a disclaimer states that the handbook does not create an express or implied contract of employment with the employee, and the employer is free to change any of the provisions as the need arises.
If you were hired under an employment contract, the contract would govern this issue. If an employer agreed to provide full payment of an employee’s health insurance premium for the length of his or her employment, the employee would have the ability to challenge that change under principles of contract law included in the contract (e.g., breach of contract).
If you do have a contract of employment, believe that the oral negotiations that took place promised you the entire payment of your health insurance while employed there, or believe that misrepresentation of this issue by the employer occurred, a consultation with a nurse attorney or attorney in your state who works with employees would be worth your time. The attorney can specifically advise you about the hiring circumstances and the state law that applies in this situation.
Cordially,
Nancy
Nancy J. Brent, RN, MS, JD, is an attorney in private practice in Wilmette, Ill. This information is for educational purposes only and is not intended as legal or any other advice. The reader is encouraged to seek the advice of an attorney or other professional when an opinion is needed.
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