Non Contributory

Definition
In regards to health insurance this is a term applied to employee benefit plans whereby 100% of the eligible employees must be insured. The employer bears the full cost of the benefits for the employees.

How does this affect me?
This is an employee benefit that is not often seen. It is usual that the employee will pay at least the disability portion of the group insurance premium. If the employee contributes this portion, then it is not taxable when the coverage is initiated.

Insurance answer
Any benefit plans is going to have some trade offs. If you want the plan with all the bells and whistles then you will likely pay more. To have a plan that is resonably priced it will have some limitations or exclusions. Talk to your group administrator to find out the limitations, deductibles and tax implications of your group plan. One of the questions to ask is if it is wise for you to also participate in a spouse's plan.

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