Age discrimination
Is it considered age discrimination when an employer has a health insurance set up on a premium flat rate. An example is a 22 yr old's rate is $144.35 and the company matches $60 so they are paying for 42% of that person's premium. A 57 year old's premium is $384.57 and the employer matches $60.00, so they are paying only 16% of the older persons premium per month. Would it be discriminatory because that older person is paying more of a percent? Thank you
1 answer | asked Apr 18, 2001 08:52 AM [EST] | applies to Connecticut
Answers (1)
Equal employer contributions are not discriminatory
I believe that the answer to your question is "no." First, the employer is treating everyone the same by paying an equal amount of each employee's premium. The fact that it is an unequal portion is not discrimination by the employer, but by the insurer who sets the rates. Second, your question is probably better stated as whether this is "unlawful" discrimination. Again, the answer is "no," since insurers may lawfully charge different rates, even if the difference is based on age.
Though harsh, I believe that this is the case. Please consider this as general legal information; it is not specific advise on which you should rely. To do that, I encourage you to consult an attorney in your state.
Regards,
Neil
posted by Neil Klingshirn | Apr 19, 2001 3:38 PM [EST]
I believe that the answer to your question is "no." First, the employer is treating everyone the same by paying an equal amount of each employee's premium. The fact that it is an unequal portion is not discrimination by the employer, but by the insurer who sets the rates. Second, your question is probably better stated as whether this is "unlawful" discrimination. Again, the answer is "no," since insurers may lawfully charge different rates, even if the difference is based on age.
Though harsh, I believe that this is the case. Please consider this as general legal information; it is not specific advise on which you should rely. To do that, I encourage you to consult an attorney in your state.
Regards,
Neil
posted by Neil Klingshirn | Apr 19, 2001 3:38 PM [EST]
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