Do self-insured corporations discriminate against disabled workers?

Have you ever heard of a giant corporation electing to self insure? Then hire a third party to administrate same? The corporation of course now has first hand knowledge of employees with a terminal illness through review of prescription medications, physicians, etc. The corporation manufactures a reason terminate an employee to avoid paying long term disability, medical bills, life insurance, etc. Just curious...have you heard of this?

Rita Risser's response:

Most large companies self-insure and have third-party administrators. By law, medical information cannot be revealed to people without a need to know, and cannot be used in making an employment decision. Does this happen? Of course.

If you believe your company took an adverse action against you to avoid paying disability, you could sue under the American Disabilities Act (ADA) or ERISA. However, you will need some proof - more than "they knew I was disabled, therefore I was discriminated against."

For example, if you were told you were fired because you were disabled, that would be proof, or if there was a pattern of firing disabled workers.

Keep in mind it is legal to terminate employees who are unable to work due to disability. The ADA only covers people able to work.

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