Legislative Branch

Cash Payments in Lieu of Separate Health Insurance Coverage

Because many employees have health insurance coverage available from a second source, such as benefits under a spouse's plan, offering the option of a cash payment in lieu of health insurance coverage can be beneficial to both the Government and the employee. The Government could realize savings by paying employees an amount less than the cost of health insurance premiums, and employees increase their income with an additional cash payment. To qualify for the payment, employees must demonstrate that coverage is available from another source. Employees would compare their current plan with the alternate one to weigh the benefits and risks of switching plans.

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Idea No. 510