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Employment Law/group health insurance


An employER (175 employEEs) pays 100% of the cost of employEE-only health insurance coverage, but agrees to "pay for" 65+ year-old employEE's cost of medicare and their medicare supplement policy.
1) can the employER require the 65+ year old employEE to take the 'medicare option' ?
2) obviously, the employER can deduct 100% of the cost of the group health insurance premium - am I correct in assuming the employER must 'add' the amount of money he pays to the employEE to his/her w-2 as additional income ?
3) if the employER has the medicare supplement premium billing sent to the business and the business pays the the premium, isn't that still considered as 'additional income' to the employEE ?
4) wouldn't all of the answers to the above questions be the same if the group size is 'less than 20 employEEs' ?

I do not believe the employer can require the 65 year old to take the Medicare option.  The employee can stay on the work insurance and opt for only medicare  A and not medicare B. What this will do to the company is raise their insurance costs because they cost more for someone 65. Legally if they force the employee to accept the Medicare option it would be age discrimination.

It will not be the same if the group is under 50 employees there are different rules under PPACA (Obamacare) than if the employer is over 50 employees. The PPACA rules are many and varied. Than the state exchanges will come into effect in 2013 and no one knows what they will be like.

Payment to an insurance company for an employee's insurance is not taxable to the employee in the U.S. at the present time. I do not know under PPACA how the rules will work as of 2014 there are a lot of changes in store. I do not like the PPACA bill and I think more people will dislike it as time goes on. It is not at all a well written bill.


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Shirley McAllister, CPP, PHR


I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).


30 years in Payroll and Human Resources

SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association) CPA (Canadian Payroll Association) NAPW (National Association of Professional Women) The Mentoring Network

PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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