Is it legal for my employer to take money out of my check for medical insurance over two months late?

Question

I obtained health insurance through my employer at the beginning of June, and my insurance cards came in less than two weeks later. I went to the doctor, had an exam, and filled a prescription. My EOB came in the mail, and the insurance paid for the visit. I just assumed that my employer was taking money out of my check each pay period, which is my fault for not paying closer attention, but she came to me just recently and said she will now start taking money out of my check because she just got the bill. How can that be true if I was able to go to the doctor and the insurance company paid for it? Because of this, the amount taken out is 100 extra dollars a month, not the amount I was told would be taken out to begin with. This is a price I cannot afford. Who is at fault here and what should I do?

Answer 1

My guess is that they are waiting till the initial bill comes through for a new employee until they actually payroll deduct the funds.  Generally when the company adds an employee they do not see the first bill for at least a month later, and sometimes two depending on when they added you and where it falls into the insurance company's bill cycle.

If they quoted you a price it is likely was based on an insurance table which sometimes is a good estimator but may not be exact.  I am surprised they did not take out an initial amount for you insurance, and then adjust once the bill comes in, however that may just be a short-coming of the way they handle new employees.

Since you signed up for the insurance, and utilized the benefits you are responsible for your portion of the premium.  Keep in mind that you are only paying a portion of the total premium and in most cases the employer is heavily subsidizing the premium.

Answer 2

There isn't much you can do.  You signed up for the health insurance, you have used the insurance, and you owe the money for the premiums.

You were able to go to the doctor because your employer gave your enrollment information to the plan and paid a premium for you.  They just forgot to take your share of the premium out of the paycheck.

I guess I'm confused as to why you say you can't afford the deduction - you would have already paid money if the premiums had been deducted starting at the beginning of June.  (Unless you don't use a budget for household expenses and just spend whatever is in your paycheck?  Which isn't a wise move, regardless of the health insurance situation.)