A common question? employers setting up a Article 105 Repayment Plan premium is "Can I offer a group health coverage to some employees, and a return of premium regime Section 105 others? " The answer? See 
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First, What is a section 105 premium refund scheme?
a premium payment plan Section 105 is simply an agreement for an employer to reimburse employees for their individual health costs of insurance premiums
with premium Repayment Plan , the company offers its employees a monthly health allowance to use on individual health insurance -. in place .? to contribute to a group health insurance plan
Why would an employer offer both
The most common situation is this - you already have a group health insurance plan in place, but some employees do not participate.
for example, they have individual coverage, coverage by a spouse, etc. and want to help contribute to their health insurance as well.
as an employer can offer both?
Yes, technically, you can offer a group health insurance coverage to certain employees and a return of premium regime Section 105 for others. However, before structuring this way, keep in mind these three important considerations.
1. Eligibility arrangement redemption premium
First, you must define the eligibility criteria in Section 105 Plan. Eligibility can be based on any of the following :.
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not participating in group health insurance plan
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criteria job Bona-fide (by location, full-time versus part-time, job title or role, etc.).
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waiting periods (not to exceed 0 days).
using these criteria, you can structure the terms of Article 105 to include employees who are not eligible for health plan group insurance and / or who are eligible but do not participate.
2. The types of bonuses of a regime of Article 105 can repay
then it is useful to understand the types of employee premiums can be reimbursed for a Section 105 Plan.
Section 105 Plans may repay most major health insurance premiums, dental and vision premiums, bonuses COBRA, and some auxiliary bonuses - provided they are not already paid with pre-tax dollars.
Section 105 Plans can not pay the life insurance policies, the Ministry of Health sharing programs or political "income replacement" - among other
for a list, see full.? what insurance premiums health Section 105 Plans can Repay
3. group health insurance meeting participation requirements
another consideration is what you may run into a situation where you have difficulties in meeting the minimum requirements for participation in the group health insurance plan.
for example, employees can see they can get cheaper coverage with individual health insurance plan refuse planning group health insurance and qualify for the Section 105 plan. Suddenly, participation in dips in the group health insurance plan, you do not meet the minimum requirements for participation, and group health insurance plan is canceled.
In this case, it is common for employers (over several years) to switch entirely to Article 105 ROP regime. Do not worry, though. This can be an advantage (and a huge gain cost) for your company and employees
See related :. 5 reasons employees love redemption premium
Conclusion
Can you offer group health insurance plan for some employees, and a return of premium regime Section 105 others? Yes. However, make sure your system meets the guidelines above.
Do you have any additional questions about Section 105 plans, the premium refund, or the plan design? Leave a question below.
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