Employer Health Insurance Reimbursement

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Summary

Your employer can legally prorate your health insurance payment based on your agreement, which states you must reimburse the prorated balance within 5 days of employment ending. If the February 1st payment was not made, you may be entitled to claim it, but it might be prorated. Consult an employment attorney for personalized advice.

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I have an agreement with my employer to reimburse health care insurance costs at the rate of $* per month, paid as a lump sum in advance. My * payment was supposed to arrive February 1st, but I verbally quit Feb 1st and gave my written resignation letter Feb 2nd. She is claiming she does not need to pay out the full month of February as my last day is the 16th. Is this legal in the US to prorate health insurance payments and not pay a full month?
Hello ****, health insurance laws can vary by state. In Oklahoma:
- Employers can decide how to handle termination of benefits.
- They may continue coverage through the end of the month or stop it on your last day.
Could you please clarify if your reimbursement agreement had any terms about termination?
It states, "Should your employment with Take It Easy Group be terminated voluntarily or involuntarily by either party at any time, you are responsible for reimbursing Take It Easy Group the prorated balance within five (*) days of your employment ending."
Hello ****, based on your agreement's terms:
- You are responsible for reimbursing the prorated balance within 5 days of employment ending.
- Your employer can legally prorate your health insurance payment since it's in your agreement.
Ensure to comply to avoid potential legal issues.
What if they never paid me the February 1st payment?
If your employer hasn't paid you the February 1st payment, you may be entitled to claim it. However, considering your agreement, the payment might be prorated. It's recommended to consult an employment attorney for personalized advice.