Question:
Is it legal for an employer to require automatic enrollment in the health plan? They are paying 100% of the premium but still…?
Answer:
Yes, auto-enrollment is legal, particularly for health insurance, as long as:
-
The employee is given advance notice, and
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They have the option to waive coverage (opt-out).
The ACA (Affordable Care Act) even encourages automatic enrollment in large employers (though the mandate has been indefinitely delayed), so legally, it’s not off-limits—but you must have a straightforward opt-out process.
I hope this helps.
Lisa Smith, SPHR, SCP
Note: This blog post is for informational purposes only and should not be construed as legal advice. Always consult with a legal professional for advice specific to your situation.
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