As health insurance costs rise dramatically, it’s becoming harder and harder to provide employees with coverage. Now add to the equation the fact that many states allow insurers to set rates based on experience ratings, group demographics or a combination of those factors.
Put it all together, and it may be tempting to refuse to hire an applicant who could raise your insurance costs. By the same token, it may seem like a good idea to terminate employees who keep filing expensive health insurance claims for themselves or their dependents.
Don’t do it! The penalties for such discrimination can be high. Courts recently have begun clamping down on employers that act against medically expensive employees. Often, the ADA is the legal basis for such lawsuits.
It works like this: The ADA makes it illegal to discriminate against employees or applicants because of their association with disabled people. This so-called asso...(register to read more)
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