Employers can still send employees to the exchanges but not with pre-tax dollars.
May 27, 2014 Leave a comment
Did you ever play a game when you were a kid and someone made up the rules as you went along? It wasn’t fun for you either, now was it? That’s the game the Obama administration is playing in Washington DC. Only the rules of the game affect everyone and they’re playing for keeps. Who keeps their job?
As a licensed health insurance broker, I have recommended many cost reduction options to employers over the last 20 years so that they may continue to attract and maintain quality employees. One of the most lucrative alternatives for both the employer and the employee was for the employer to consider offering a stipend to their employees for them to use to purchase their own individual health insurance on the open market. Contrary to popular belief when comparing apples to apples, individual health insurance premiums are almost always cheaper than employer sponsored group health insurance premiums. This is especially true when you subtract the amount the employer pays towards the premium.
Since employer sponsored group health insurance is not taxable to the employer, recommending that employers provide a stipend to their employees to purchase their own individual health insurance would create a taxable event for both them and their employees. However…
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