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Ray, Employment lawyer
Category: Employment Law
Satisfied Customers: 36344
Experience:  30 years in Employment law
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Can an employer pay a retired employee cash insurance

Customer Question

Can an employer pay a retired employee cash for health insurance
Submitted: 7 months ago.
Category: Employment Law
Expert:  Ray replied 7 months ago.

Hi and welcome to JA. Ray here to help you today.

Your employer can provide you cash here, reimbursement for insurance in lieu of health insurance.The employer would add this to your monthly or bi monthly check.This is certainly possible in Iowa for an employer to do so.

I appreciate the chance to help you today.Thanks again and Happy Easter.

Expert:  Ray replied 7 months ago.

Reference to defined benefits aka health insurance reimbursement.

Rather than paying the costs to provide a specific group health plan (a "defined benefit"), Iowa employers instead fix their costs by establishing a monthly dollar amount (a “defined contribution”) that employees spend on their individual healthcare premiums. Employees participating in a defined contribution health plan in Iowa can request tax free reimbursement for individual healthcare premiums.

Expert:  Ray replied 7 months ago.

If you can positive rate it is always much appreciated.

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