This is a ? common issue for small businesses . Want to contribute to employee health, but the health insurance coverage of traditional employers is not in the cards. At the same time, employees are mandated under Obamacare to purchase coverage and the company would like to chip in if they could.
Can employers help employees with their coverage Obamacare? Is reimbursement of individual health insurance still allowed?
The answer is yes, as long as you follow the new rules Obamacare. Let's take a look.
is the redemption of the individual health insurance is still allowed?
Yes!
Under the current rules, regulations and the tax code, the reimbursement of individual health insurance (including "Obamacare policies") is still allowed as long as the applicable rules and regulations are followed. And as you probably heard, the failure to set up a repayment plan complies result in costly fees
Related :. Health Insurance Reimbursement - How to avoid costly penalties
So what is the "right path" and the "wrong way" to reimburse employees for health insurance premiums
the "Right Way" - a Formal, consistent reimbursement arrangement
to reimburse employees for individual health insurance, an option is to set up a medical expense reimbursement plan section 105.
to comply with the rules of the new Obamacare section 105 Plan is designed in a way; it is structured to pay only:
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health insurance premiums up to a monthly allowance, and
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preventive care services base as required by the reforms.
This type of repayment plan is sometimes called a Repayment Plan Health Care or HRP.
Another option is to provide an allowance ( "bonus") employees to use on health insurance, even if the employer and the employee pay taxes and no guarantee employees will use the money on health insurance.
What is the "Wrong Way?"
following do not meet the requirements of new reforms and employers may face penalties for these types of arrangements:
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Pay directly to the health insurance premiums for employees of the insurance company
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Reimbursement of employees directly, without use of a health plan Section 105 compliant
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Paying employees through a non-compliant plan as a stand-alone HRA
Related: [assurancesanté1945035employés] reimbursing Are we properly
Conclusion
Is reimbursement for health insurance even allowed? Yes, the employer may provide reimbursement for health insurance using a Section 105 Plan complies with ACA market reforms, as well as other federal regulations.
What questions do you have on the repayment of employee health insurance? Leave a comment below.
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