Rebate Checks and how to Distribute

[CR in STL]

Rebate checks are coming in along with phone calls on how to handle the distribution when the employee pays the cost of their dependents. Obviously the employer is entitled to keep "their fair share" of the rebate based on what they pay for the employee coverage but what about when the employee is paying for a portion of their own and/or dependent coverage.

Now they can use the rebate to lower premiums or rebate those that paid for the plan. Either way the employee who is paying for their dependents or a portion of their coverage is going to ask where is "their fare share".

How are you advising your employers to divy up the rebate?

 

[Guest]

Great question. Carriers around here have no answer on this. 1st question clients asked. When someone knows DEFINITIVELY, please post. Thanks.

 

[Yagents]

I am so tired of hearing this "fair share" bullsheet.

 

[ABC]

All of my carriers are tight lipped.

I wish I could say just apply it towards the next months premium.

 

[somarco]

At a carrier meeting yesterday and the question came up about employer guidelines for distributing rebate checks.

The response?

Our legal department is reviewing that . . .

 

[CR in STL]

At a carrier meeting yesterday and the question came up about employer guidelines for distributing rebate checks.

The response?

Our legal department is reviewing that . . .

Of course the carriers will not direct anyone on what to do. They all say check with their tax advisor, attorney or department of labor.


I had a conference call Friday with a CEO and his attorney and the attorney had no clue.

 

[ABC]

Well, at least everyone is on the same page of not really knowing what to do.

 

[stuy119]

Leadership by committee at its finest.

 

[leevena]

Check out the DOL Technical Release 2011-04 for guidance on this issue. It is easy to read and straight forward guidance for the employer.

 

[somarco]

Technical Release No. 2011-04