In most cases, it’s not the employer that requires this, it’s the insurance company. The insurance company can do whatever they want to make sure that they understand the risk that they are taking on. They need to know what the chances are that the insured people are going to make a claim and base the premiums on those odds.

If it is the employer that is requiring this, technically they are the owners of the policy and can decide who does and doesn’t get insurance coverage (within reason…obviously they can’t discriminate against race or sex, but anything that may cause the rates/claims to go up, they can certainly pick and choose). It’s simply a way of minimizing thier expenses and providing affordable coverage to their employees. Technically as owners they can do whatever they want. IF they decide that it is manditory for employees to do 10 jumping jacks a day, every day and greet their boss with a handshake and smile every morning to keep their coverage, they can do it if they want (obviously this example is extreme and ridiculous, but completely legal). Chris C