Don’t Be Fooled

As P.T. Barnum allegedly said, “There’s a sucker born every minute”.  As health care costs continue to rise, some of our competitors are selling illegal solutions to lower premiums. The latest sham is for companies to offer high risk claimants financial incentives to leave their group policy and accept an individual health insurance plan paid for by the employer.  Removing these individuals improves the claim experience and can result in lower overall premiums to the company.

The United States Department of Labor clearly addressed this issue in a November 2014 FAQ.  This practice constitutes unlawful discrimination based on one or more health factors, in violation of federal nondiscrimination laws.

As always, we encourage you to seek advice from your legal counsel.  The risk is high and the penalties are stiff, so don’t be fooled.