LDRM and UE agreed to jointly write to the Department of Labor and Internal Revenue Service to seek their guidance on SCA/CBA employees’ ability to waive medical coverage entirely or by enrolling in a medical plan on the ACA or State Marketplace, receiving their residual H&W dollars in cash. LDRM agreed that if DOL’s and the IRS’s written guidance demonstrated that penalties on employee waiving, and/or LDRM would not impose penalties and there was no violation of law; LDRM would allow medical insurance waivers. When the response was received, it was clear that UE was correct, and employees could opt-out of LDRM’s insurance and receive H&W as cash-in-lieu. LDRM now claims to need a private ruling letter sent directly to LDRM from the IRS stating there will be no penalties for employees opting out of the company’s insurance and receiving earned H&W dollars as direct cash payments, even though we have clear guidance from the IRS in our favor. 

LDRM it is now time that you hold up to your end of the bargain and let your employees have the option to drop LDRM’s insurance coverage.