Taxing Employer Benefits. About Time ...

[somarco]

Doesn't an HRA require a group health plan to be attached to it?

No. . . . . . .

 

[dgoldenz]

Interesting. I don't do much group health as you can see, usually just two-person groups for those that can't qualify with individual. You would think more employers would prefer that type of plan. I seem to be coming across a lot of them from people looking for a different policy, but usually tied to a group deductible-first plan instead of allowing people to buy on their own.

 

[somarco]

The HRA is quite flexible. You can pair it with health insurance, group or individual or have it as a stand alone benefit.

Few employers (and even fewer accountants) really understand it.

 

[stuy119]

The HRA is quite flexible. You can pair it with health insurance, group or individual or have it as a stand alone benefit.

Few employers (and even fewer accountants) really understand it.

Agreed. It's a shame that more don't know about it, or how to make it an effective part of a benefits plan.

 

[Suis]

When I first started a business about 12 years ago with a staff of 16, I offered health insurance but quickly ended that when one staff member had high blood pressure and caused the premiums to rise considerably. Luckily, she left for another position and we gave everyone a small raise and ended that idea. That was when I hated to read the policy (actually I still do).

I know of one employer a few years ago that dropped his health insurance. It was the biggest hassle dealing with the employees and ever increasing costs. He gave everyone a quarter an hour raise, only one person complained. The rest were happier than a pig in slop. Do you honestly believe it only cost him a quarter an hour to offer health insurance?

Now he just buys a policy for himself and his daughters if the husband doesn't have a job that provides health insurance.

- - - - - - - - - - - - - - - - - -
This is how I read it, too. In fact, there were many employers who were already dropping group coverage and allowing agents to talk to their employees to set them up with Individual and family health at a lower cost.

Some employers would pay a portion of it in a salary increase. Some not - with the recession, some employees were only happy to keep their job and not get more of an hour or pay cut. Of course this was all PRE Health Reform - who knows what will happen now.

In our area, many small biz are taking a considerable hit with this economy. Many are even closing. I keep wondering just how bad is it going to get?

Correct me if I'm wrong, but I thought most agents here are self-employed...and if you sell individual health, employers dropping their plans is a good thing since you have potentially more prospects/clients. If you sell group health, that's a different story.