Overdue Health & Welfare Charges
May 15, 2019
Health and welfare benefits, such as healthcare premiums, are deducted from an employee’s paycheck each pay period. When these premiums cannot be deducted from an employee’s paycheck, the past due premiums are considered overdue.
Employees are required to pay overdue Health & Welfare premiums after meeting a two-part threshold:
1. $750 in overdue premiums, and
2. Two (2) months of uncollected premiums.
Once these thresholds are hit, a direct bill notification will be sent to the employee’s current address of record with the company. This notice will contain the following instructions:
1. How to resolve any unpaid benefit premiums,
2. Contact information for employees to inquire about overdue balances or for any additional questions.
Failure to pay overdue balances may result in suspension of the payroll deductions for benefits which may subsequently result in the termination of all Health & Welfare benefits.
On the other hand, if the employee’s overdue premiums do not exceed the two-part threshold ($750 and two months of uncollected premiums), the overdue amount will be held until either the next paycheck, or until the amount exceeds the thresholds. If the employee returns to receiving a paycheck before meeting the thresholds, any overdue amounts held will be deducted from their pay until the full overdue balances are collected.
This policy was further revised in 2016 when United made changes to how arrears are processed and administered for all employees.
In 2016 United made changes to how arrears are processed and administered for all employees. When employees remain in active status but do not have sufficient pay for their Health & Welfare deductions, the employee will be moved to a Direct Bill status and will be required to pay once reaching the $750 threshold.
pdf: Overdue Health and wellness benefits
Once the employee has three (3) consecutive months with pay that is equal to three times (3) the sum of her/his medical, dental and vision deductions they will be moved back to payroll deductions.
If a member has paid through Direct Bill for the month that they are moved back to payroll, the UABC will issue a refund to the employee.
If you have additional questions, please contact your supervisor or HR Representative.