I have heard of gettting extra pay (flex pay?), if I choose not to receive medical benefits from a company?!?!

Question

Don't know much of the detail but I've heard before that an employee can get like a credit (money each check) by choosing not to receive medical benefits from a company. Is this a state (FL) or government thing or is this a "company policy" thing?!?! I really can't find any of this info. online...if any of you have any references or anything It'd be great.

Answer 1

It is not a state thing but if a company allows you to opt out of the benfits package and keep the dollars you have to provide information that you are insured somewhow else.  Usualy a spouse can opt out of the coverage and keep the extra dollars if the other spouse has health insurance with their company.

If you have the chance to have coverage I would take advantage of it

Answer 2

company thing - in my company you get $100 extra per month if you opt out of medical coverage - so long as you have a spouse you get coverage under, you're fine, but you won;t be allowed to do without coverage totally - and it would be insane to do it - an individual policy just for yourself would cost over $300 per month and if you go without one all together - even an emergency room visit could wind up costing you $1000's

Answer 3

Company policies dictate, not govt.

Your medical benefits gets funded (in part or whole) by your company.  If they provide a set amount, say $4000/year, then the plan's cost is subtracted from that and you get whatever is left into a flex spend account (special tax-free account).  If it's more, it gets yanked from your paycheck (typical for family plans).

If your company allows you to opt out of a plan (example: your spouse's plan covers you) the whole amount goes into a flex account, unless you tell them not to (opt out), then it's considered your pay and gets taxed accordingly.  

But you need to tell them from the start or else you need to rack up some heavy medical bills to get that money.  The flex-spending account is meant to allow for medical payments to be made tax free, not as extra income, so it's tough to take it out once it's in a flex.  One method is to use that money to get alternative coverage, but typically, a company-negotiated plan is cheaper and a better value.

Good luck!