Medical Opt Out

QUESTION Dear All, I’m new in the HR field. I came across Medical Opt Out (employee choose to opt out on company medical scheme). The company in return gives them a sum of money every year. Isn’t company medical benefits provided if you choose not to have it is your personal accord. Why is there a need for company to give a token for opting out. Is this a common practice? What is the pros and cons? Appreciate if someone can shed some lights on this topic. Jenny     REPLIES & COMMENTS REPLY 1 Some employees either have their own personal medical insurance or are covered by their spouse’s company insurance as well. So having the additional medical cover by the company does not benefit them any further. But there is no reason for them to Opt out if there is no incentive to do so. Every employee who opt out is a savings to the company. I suppose the token is given to encourage those employees who do not need the cover to actively opt out. But allowing this opt out scheme carries some risk. Its important for the company to ensure that the person opting out, do […]