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galestephanie
07-11-2007, 10:30 AM
My husband is retiring - I applied to get my family on our health insurance at my company. They told me it is expensive (1700 per month) because of my age, so they will reduce my salary 10,000 annually to compensate. Someone else added their family two years ago - their premium is 1000 a month, and their salary wasn't reduced.
They say since there are only 14 employees, they can do anything they want - rules don't apply to them.
Can they reduce my salary if they havn't reduced anyone elses? Is this age discriminatio? Or some other violation (aside from just being not nice...)

Beth3
07-11-2007, 10:56 AM
With such a small size company, that means that the insurance premiums are "individually rated" - that is, the insurance premiums are billed by employee based on each employee's specific information: gender, age, number of dependents, etc. (The same information is used to determine the premiums for larger companies - it's just that in that case, all the census data is "blended" to create one premium rate per insurance plan for single coverage, family coverage, etc.)

I can't think of any law that would prohibit your employer from reducing your salary to account for the substantial insurance premium they're now paying for you. It's also possible that they were paying you a higher salary in the past because they weren't paying family insurance premiums for you.

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