Requirement to purchase short-term disability insurance

[scifer]

I am currently employed with a company that is requires me to purchase short-term disability insurance as a requirement for employment. The insurance company that provides this coverage through our company refused to cover me due to me not meeting their physical requirements. I then purchased a policy through a third party. This has become a financial burden due increasing health insurance cost and the policy itself does not provide very good coverage for the money it is costing me. I want to drop it but my employer claims I have to keep it to keep my job. Is it legal for him to require me to purchase this insurance. I am an hourly employee. I work in an office setting and I am under no increased risk. Also, he states that if he helped to subsidize the cost of the insurance then he would have to take taxes out on any claim I file.

 

[cbg]

I am not aware of any Federal or Alabama law that prohibits an employer from making STD insurance mandatory but you could inquire of the state Department of Insurance. The employer is correct that benefits would be taxable if he were to provide any subsidy. For that exact reason, many, many employers including my own do not subsidize the cost of disability insurance.

 

[scifer]

Thank you for your reply. I will check with the Department of Insurance.

 

[Betty3]

If it is allowed, some states offer STD policies (state policies) at a lower cost than from a private ins. company.

 

[cbg]

That is true, but Alabama is not one of those states, unfortunately.

 

[Betty3]

Bummer, sorry OP..........................
(need group or private plan)

Gad, I knew Alabama doesn't - I have a list of the few states that do offer one & even know them from memory. My mind isn't working so well today.

 

[cbg]

That's okay, Betty, you've got a lot on your mind today.

 

[Betty3]

Thanks, that I do...............