Until a while ago (in 2010, to be more precise), companies would have the option to reimburse their employees for health insurance. This meant covering insurance costs for employees who would choose their own insurance. Covering individual insurance premiums used to be an advantage for smaller businesses that didn’t have to decide on a group plan.
Today, however, it’s not a good idea to try to reimburse the health insurance of your employees before being informed of the consequences of this practice. Companies risk big group plan penalties if they do so, as reimbursement is not subjected to tax and it has to be declared by both the employer and the employee.
However, you can still keep this practice while being safe from tax penalties if you use a health reimbursement arrangement.
The solution for this type of situation is reimbursing your employees by following an HRA (a Health Reimbursement Plan). It allows your employees to choose their own plans and not comply with a group, one-size-fits-all insurance plan. By using an HRA, you won’t receive penalties and the reimbursement won’t be taxed.
Types of Reimbursement Plans on the Market
Here are the main reimbursement plans you can benefit from:
Choosing the reimbursement plan that suits you can be confusing. If you have any questions or wish us to help with the entire process, you are welcome to get in touch with Taylor benefits Insurance Agency.
Working with us has made many customers happy and more productive, strengthening the relations with their employees. We are happy to give you the best solution for your needs, and explore different approaches. It’s not easy for companies to navigate through the insurance system, which is why we explain everything thoroughly and invite insurance agents to present their offers in detail.
We offer you:
If you are looking for an affordable private group health insurance that would cover your employees when they need basic and specialized medical care, don’t hesitate to contact us. Our network of insurance providers is vast and gives us great flexibility through a multitude of options.
If you think reimbursing your employees for their medical expenses is the way to go, we can advise you on the various reimbursement plans you can apply for, and what each of them implies.
Contact us today to get in touch with our expert adviser and improve your company’s insurance plan.
We’re ready to help! Call today: 800-903-6066