If my employer just told me it didn’t take out the correct amount for health insurance for the past 18 months and it wants me to pay it back, do I have to?
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If my employer just told me it didn’t take out the correct amount for health insurance for the past 18 months and it wants me to pay it back, do I have to?
The benefit company billed my employer for the extra premium and it was paid by the employer. It just realized several people were not paying the full employee premium. Future deductions will be correct, but it indicates that we will need to pay back premiums, in my case about $6500.
Asked on February 24, 2012 under Employment Labor Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
What was the agreement at the time you selected or opted into the insurance, between you and your employer? That is, how much were you supposed to pay? If you paid too little, for any reason, the company may enforce the terms of the agreement and recover the shortfall from you. (An "agreement" does not need to be a formal written one; it can be the oral agreement or understanding, or the agreement evidenced by the health insurance policy documents, rate charts, intraoffice memos or emails, etc., as to what your employee portion of the premium would be.)
The company may not simply take the money out of your paycheck, without your agreement. However, if you do not agree to some repayment scheme the company finds acceptable, it could sue you for the money. It may also choose to fire you (unless you have an employment contract protecting or guarantying your employment in some way).
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