Compensation for Health Insurance Policies

[WISERInsurance]

In Florida, many insurers are not paying commissions for policies sold during 2017 Open Enrollment. Aetna & Coventry are paying $7 per application only/per month.

Are we able to begin charging clients a consulting fee as long as we advise them upfront that this is how we would be compensated for our time/expertise?

Looking to hear how others are handling this situation. Thank you.

 

[Yagents]

Florida passed a law allowing fees with some requirements

 

[DmitriyBronfman]

In which cases the medical insurance is covered?

 

[AnzhelaDvorkina]

Are employers required to maintain health insurance benefits for employees who are out on workers’ compensation leave or can they put such employees on COBRA and have them pay the premiums?

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What are covering the positives, the negatives and the alternatives to Life Insurance?

 

[NavidRahmani]

Can I Give My Employees Bonuses Instead of Health Insurance?

 

[tonyisme]

They love you more if U give them health insurance! A lot more!

 

[KennyWest]

Can I Give My Employees Bonuses Instead of Health Insurance?

No, that is specifically disallowed, at least if the employees know that is what the $ is for.

 

[RayNY]

No, that is specifically disallowed, at least if the employees know that is what the $ is for.

They can know what it's for, you just can't tie the bonus/raise to health insurance. They call it a "cash in lieu" arrangement. IRS notices 2015-87 and 2015-17 for more info.

By "tie", the IRS means:

• -Only get the bonus/raise if you had health insurance
• -Must submit proof of coverage to get the raise/bonus
• -Lose the bonus/raise if you terminate your policy
• -Raise/Bonus amount is tied to the cost of health insurance (whether it's exactly, indexed to premium raises, or varies by coverage tier)

If a company says "we're no longer offering health insurance, but we're giving everyone a $125/week raise", that's permissible.

Keep in mind, it's taxable income. The employer mandate still applies, so a large group required to offer coverage must still offer coverage or pay the penalty.

Trump has directed agencies not to enforce the mandate, and has promised to repeal it, but as of today, it's still law.

 

[kgmom219]

If a company says "we're no longer offering health insurance, but we're giving everyone a $125/week raise", that's permissible.

I'm going to wait for my favorite CPA spouse to jump in, but I don't think so Ray. I think its specifically NOT allowed. That's what most of us have been going on, anyway. And every CPA I know, too.

 

[scagnt83]

Ray is correct on this one (from my experience). And his IRC citations are correct if my memory serves me correctly.

There is no law against giving a Discretionary Cash Bonus to an Employee.

There is also no law against dropping (or not providing) Group Health.. although they could be assessed fines if large enough.


* What is not allowed, is to requireemployees to purchase individual insurance in order to receive the Cash Bonus.
Also, the Cash Bonus amount can not be tied directly to each employee's private insurance premiums.

So the employer can't say "show me your monthly bill and I will give you a bonus to cover it". That is not allowed.

But if the employer just gives the employee a set monthly discretionary bonus with no strings attached... free and clear to use as they wish... they are fine. No laws or regulations against that.