As micro businesses set up shop and grow their business, they often look for tax-free ways to pay for health insurance. The most popular route is to set up a tax-preferred premium reimbursement program to reimburse themselves and employees tax-free for individual health insurance.
Today, fewer than 50% of small businesses offer employees traditional health insurance, largely because of the cost. Instead, they are adopting reimbursement models to provide a more affordable health benefit. This article covers the basics of employer reimbursement of health insurance premiums, including what it means and why small businesses are quickly adopting this model.
Open enrollment is right around the corner, and several states have released initial rate filings for individual health insurance plans that will be offered on and off the public Health Insurance Exchanges.
The health insurance industry is undergoing a dramatic transformation from an employer-driven group health insurance model to an employee-driven individual health insurance model. Many of these changes are starting in the small business sector.
Small employers and their health insurance brokers may be all too familiar with the small employer health insurance death spiral, a circumstance that leads to escalating health insurance rates and health plan cancellations. This article takes a look at how the death spiral impacts small employers, and the best solution to combat it.
According to the U.S. Department of Health & Human Services (HHS), 87 percent who purchased health plans through Healthcare.gov in 2014 qualified for premium tax credits, with the tax credit covering 76 percent of the premium cost. For those following the Affordable Care Act and the shift in the health insurance market, these numbers are significant.
More and more, businesses are setting up self-insured medical reimbursement plans to reimburse employees tax-free for individual health insurance. As businesses transition to these types of premium reimbursement plans, it is important to understand the four key Internal Revenue Code (IRC) sections that allow for tax-preferred premium reimbursement.
Disclaimer: The information provided on this website is general in nature and does not apply to any specific U.S. state except where noted. Health insurance regulations differ in each state. See a licensed agent for detailed information on your state. Zane Benefits, Inc. does not sell health insurance.