Who pays health insurance if employee quits mid-month?

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Who pays health insurance if employee quits mid-month?

Anonymous Jan 18, 2012 Business Contracts 6 views 3 answers

An employee of mine quit on January 11. I paid his health insurance. His wife and child were covered under the same policy but he paid their portion of the premium out of his paycheck. The insurance company wouldn't cancel his policy mid-month so it is running through the end of the month. Am I required to pay the premium for the full month of insurance or only for the prorated amount based on the number of days he worked?

Asrar M AhmedEmployee Benefits LawyerChicago, IL · Answer 1 · 2026-06-15T10:36:27+00:00

Insurance law is generally dictated by the contract language. The terms of the insurance policy you have acquired for your company will provide detail on the matter. You should have an attorney review the insurance policy and interpret the relevant provision for you so that you may proceed appropriately.

Marilynnmika Spencer · Answer 2 · 2026-06-15T10:36:27+00:00

If the policy requires prepayment for the full month, then you are responsible for that payment. The insurance policy most likely requires this kind of prepayment, and states insurance will end at the end of the month. Assuming this is correct, then those are the terms you agreed to when you bought the benefit. Certainly the employee is not responsible for your decision to provide insurance for which you prepay. (Yes, I know that is how these plans work.) Generally, you cannot charge an employee for anything you and the employee did not agree to before the end of the employment relationship.

Frank Chen · Answer 3 · 2026-06-15T10:36:27+00:00

I agree with Attorney Spencer. If the group health insurance policy requires prepayment for the full month, then you the employer are responsible for the payment.

Who pays health insurance if employee quits mid-month?

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