11/19/14

Mendel Quoted in New York Times Story Titled “Regulators Warn Against Reimbursing Employees for Health Premiums”

Related Practices

Attorneys & Professionals

Linda Mendel, of counsel in the Vorys Columbus office and a member of the labor and employment group, was quoted in a New York Times: You’re the Boss story about an Affordable Care Act (ACA) clarification recently issued by the federal government that may indicate that employers cannot subsidize its employees’ individual health insurance through a stipend.

The article states:

“Suppose an owner just gives raises and doesn’t specifically reimburse premiums? Can the owner tailor the amount of additional compensation for each person to the cost of health insurance without crossing the line into reimbursement?

Yes, at least if the owner gives the raise unconditionally. For example, the raises could follow the government’s age curve that sets the relative cost for premiums in the individual market. ‘Employee pay rates and raises are subject to various employment non-discrimination rules but, other than that, employers have wide discretion in setting pay,’ said Linda Mendel, a lawyer in Columbus, Ohio. It is not illegal, by the way, to discriminate in favor of older workers”

To read the entire story, visit the New York Times website.