There is no law requiring an employer to provide health insurance, so the employer may discontinue the coverage at will. (Even the new health care law, once it goes fully into effect, will not require coverage--employers may pay a fine or penalty rather than provide insurance.)Any money taken from employee paychecks for insurance without actually providing insurance at that time, however, must be returned, and if the employer will not return it, the employees could take legal action (e.g. sue) for its return.