Opt-Out Arrangements: Employer Compliance Considerations
Employers are often looking for ways to manage rising health care costs. One common approach they may consider is offering an opt-out arrangement to their employees. In such an arrangement, an employer offers a financial incentive or an opt-out payment to employees who waive employer-sponsored group health coverage. This Benefits Brief provides an overview of the compliance considerations an employer should take into account prior to establishing an opt-out arrangement.