B2B

[Delta76]

This is a dream scenario for the defined contribution employee health plan using IFP and a Section 105 HRA.

Can you help me understand the basics: With a Sect. 105 plan, the employer can put money in it and the employee can use it for either premiums or medical expenses. Correct? (at least if the employer allows both when setting it up)

One problem I've run into is the employer doesn't want to contribute anything to other employees currently on their spouses plan. As far as I understand, it's not possible to exclude those employees (same class of employee)?

That is one reason I've used individual premium reimbursement accounts, those with other group coverage are automatically not going to touch the money.

Please help me understand how you typically structure this combination? I sincerely want to learn. I've spent alot of mental energy trying to figure out how to apply the concept in more situations with out creating an administrative nightmare.

 

[moonlightandmargaritas]

This is a dream scenario for the defined contribution employee health plan using IFP and a Section 105 HRA.

One problem I've run into is the employer doesn't want to contribute anything to other employees currently on their spouses plan. As far as I understand, it's not possible to exclude those employees (same class of employee)?

This can be a challenge. The boss is usually saving a lot of $$$ even net of it.

Matt, send me a PM - too much info to cover on the board.

 

[J.R.]

What does he do with the insurables? I thought about doing the same thing in MD with smaller employers, but list bill is not allowed for small groups.

Assuming you meant "uninsurables", we have a guaranteed risk pool that is reasonably priced (capped at 25% above the private market). We also can't list bill, but you can still get a pre-tax deduction using a Sect. 125 individual premium reimbursement plan. That being said, unless you have a small business (under 5 employees), it can be a pain in the ass to administer. I've taken some of my small groups this direction when we have one person in a small group creating a substantial rate increase for the rest.

That's a nice alternative.