With small employers considering the elimination of health insurance and health plans battling it out with hospitals “…now is the time to cash the hidden paycheck…”

Media Contact: Barbara M. Fornasiero, EAFocus Communications; barbara@eafocus.com; 248.260.8466

Royal Oak, Mich.— May 28, 2026— At one time, employers referred to employee benefits, which include health and welfare benefits as well as retirement benefits, as the ‘hidden paycheck.’ While that expression isn’t used much today, the reality is that what was once valued as being worth up to one-third of an employee’s overall compensation is now under threat as insurance costs skyrocket, health plans are disrupted and new retirement plan options increase uncertainty and risk, according to nationally recognized employee benefits litigator and Employee Retirement Income Security Act (ERISA) attorney J.J. Conway of Michigan-based J.J. Conway Law.

Conway cites three recent situations that highlight the problems on the health insurance side. First are devastating survey findings from the Small Business Association of Michigan, revealing that 42% of small business owners surveyed would consider dropping health insurance for employees over the next one to three years if insurance premiums continue to rise. The other two situations are related to provider reimbursement: the ongoing battle between United Healthcare and Corewell Health, and the now settled fight between Blue Cross Blue Shield of Michigan (BCBSM) and Michigan Medicine.

“These are definitely concerning trends, with United Healthcare refusing to recognize five of Corewell Health’s Southeast Michigan hospitals/providers as in-network – with more to follow in the next few months if an agreement on reimbursements can’t be reached. These are chiefly local hospitals that play a vital role in community-based care close to home – yet those who paid for access through their employers can’t get the in-network care they were promised,” Conway said. “Similarly, with Michigan Medicine, arguably one of the most respected health systems in the country, 3000,000 insureds were told by BCBSM to find another provider if the insurer and health system couldn’t come to an agreement on reimbursement terms by June 30, 2026. It was announced on May 27, 2026 that such a deal had been reached. Employers offer BCBSM as a premier health insurance plan and employees pay higher monthly premiums and deductibles accordingly to see some of the top health specialists in the country at Michigan Medicine. That access was in jeopardy and if such disruptions continue, it could open new avenues of litigation by insureds.”

Conway adds that scenarios like those of BCBSM and United Healthcare are likely to continue as health systems, regardless of nonprofit status, seek to become major profit centers and play hardball with insurance companies on reimbursement rates. Similarly, he sees a tug of war over reimbursement as hospitals pocket the money saved from the 340B Drug Pricing Program rather than sharing the savings with the insurance plans.

“The health insurance market is costly and unpredictable and it’s taking monetary value, not to mention peace of mind, from the hidden paycheck,” Conway said. “And we’re seeing similar threats to once predictable retirement plans, as risky investments such as cryptocurrency and private credit become government-sanctioned menu options that ultimately could bring significant losses in retirement income to inexperienced investors. Couple that with an environment where hard fought ERISA protections for retirement plans like 401(k) plans are weakening and it’s really a tenuous situation.”

Conway notes the trend in this decade toward offering more work/life balance perquisites can blur the importance of the hidden paycheck’s protection of health and welfare. He says that employees need to revisit their entire compensation package – especially when weighing a new job search or job offer – to maximize its value.

“Now is the time to cash the hidden paycheck,” Conway said. “It is not prudent for employees to take their health and welfare benefits for granted in this environment. A hands-on, close review of insured benefits should incentivize employees to maximize the value of those benefits now. Likewise, take a look at employer-sponsored retirement and pension plans for fiduciary compliance. Sadly, with trust eroding between employer and employee, employees need to be vigilant in guarding their retirement investments.”

About J.J. Conway Law

An employee benefits litigation and ERISA law firm founded by John Joseph (J.J.) Conway in 1999, J.J. Conway Law represents those seeking full access to the employee benefits they are legally entitled to. The firm has been involved with nationally significant employee benefits, disability and pension cases, including class action lawsuits for such landmark decisions as granting Medicaid-eligible Michigan children with previously denied intensive mental and behavioral health care services; requiring private Michigan insurers to cover autism treatments for children through age 18; and protecting the pension rights of City of Detroit employees, police and firefighters as well as Wayne County employees by holding their trustees accountable for investment decisions. The firm’s motto, Conquer Tomorrow®, is dedicated to making the future more secure for their clients across the United States.  Learn more on the firm’s website.

 

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