We pay 100% Healthcare, I want to buy an individual plan rather than a group plan for one employee (2x$$).
What are the implications, concerns, and considerations? Thank you for helpful comments!
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Why not just provide $X dollars in reimbursement for healthcare costs? Let them pick the plan they like/fits their needs and you give the dollar amount you’re comfortable with?
Sounds simple to implement. Although I suspect this could end up costing more, as I’d have to give all employees the same amount, to cover Healthcare plans that get more expensive with age and family size. I also don’t think this would allow me to advertise 100% paid Healthcare because the benefit would be cash.
Can be tricky because you might be accused of discrimination if the individual plan is much better and if there’s no good business reason for doing what you’re planning to do. https://newcityinsurance.com/can-i-offer-different-employee-benefits-packages-to-different-groups
I’d like to purchase the same individual plan for everyone. I can’t enroll in a group plan because I only have one employee participating. Other employee has military coverage.
I see what you are saying. There ate offerings out there for tiny companies. Check your payroll software provider they may even offer it. Talk to a health insurance company to see if they can accommodate you. If you go through with judt paying for someone’s indiv. plan, it won’t be pre-tax, which is a disadvantage. Also talk to your tax accountant.
Thanks, pretax dollars are preferred. I’m now looking into something called ICHRAs which seems to be tax-deferred, and unused dollars go back to the employer, but not sure how to employees / military who don’t need coverage.
Why? Just don’t offer health insurance. Give the employee a raise equal to what you would like to pay. They may even qualify for much cheaper insurance through the ACA. It’s usually foolish for a tiny company to pay for health insurance nowadays. It’s not 2007 anymore.
This would increase income and might sound attractive to some but for many minimizing taxable income is preferred. My industry and staffing shortages make for a highly competitive market. Healthcare is the most sought after benefit and by offering it 100% paid, we have an advantage over competitors to attract and retain employees. Also, it reinforces that health and well-being are valued and premiums are tax deductible. I hope you are one of my competitors with this view.
Too funny. But sure. You got it all figured out. Best of luck.