come with open enrollment, many small and medium enterprises consider their employees to the individual health insurance market move. A common question many of these entrepreneurs ask, "does our employees individual health insurance premiums refund disqualify receive premium tax credits?" The answer is no.
employees who still have a health supplement, a premium refund plan to access premium tax credit, remain effective as long as they meet other eligibility criteria, based on household size and income. This is due to the fact that, when properly set up, a premium refund plan is not "financed eligible employer plan.
What is an eligible employer-sponsored plan?
After 26 USC § 5000A (f) (2):
, the term "financed eligible employer plan" is offered with respect to an employee, a group health plan or group health insurance through the employer to the employee who is -
(B) all another plan or offered coverage in the small or large group market within a state.
This term is a grandfathered health plan in paragraph include (1) (D) are offered in a group market.
a premium refund plan is not 1) a government plan, or 2) offered in the small or large group market within a state, the premium refund plan is not " funded eligible employer plan "
. Tip: It has the premium refund plan are taken in the design and management to the plan, to ensure not the definition of an eligible employer meet -sponsored plan in IRC section 5000A and thus qualify as a minimum coverage. This ensures employees can participate to get the premium tax credit, provided they meet additional eligibility criteria.
How can premium tax credits make successful?
The federal government provies rebates on individual health insurance for individuals and families who qualify. These discounts are called "premium tax credits" or "premium subsidies" and the health insurance marketplaces acquired by being executed by each state for the policy.The authorization for this premium tax credits based on the following factors:
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income requirements: families who earn 400% of the FPL (Federal Poverty Line) can for Premium -Steuergutschriften be granted
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household size: income requirements are also dependent on how many family members live in a household, , for example, a person earning $ 46,680 into 2014 would a premium tax credit granted, while a family of four to $ 95,400 would be eligible in 2014 for a premium tax credit earn up
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access to affordable health insurance: those having access to health care through their employer or a government program like CHIP, Medicaid, Tricare, etc. would not be eligible for a premium tax credit
have for more information on Premium tax credits can be found in this manual ,
How to take advantage of cost savings in the premium tax credits Can Take
You can take savings advantage of the premium tax credit, while still your employee benefit offer a valuable health individual of their to reimburse health insurance premiums. Your employees can buy the premium tax credit access by a policy in the marketplace. employees receive only the refunds for the non-subsidized part of their premium .
In this type of arrangement, you and your employees to save on your insurance to save a combined 50 percent cost. This has become a big trend this year among small and medium-sized enterprises. Rather than simply offering your employees a grant, a formal bonus offers reimbursement plan implementation ensures that your employees the means are the costs of health insurance.
As a premium refund plan is not "financed Candidate employer plan" is, it is not the employer shared responsibility provision (employer mandate) meet the ACA. The requirement applies only to companies with more than 50 full-time equivalent (FTE) employees.
For companies with less than 50 FTE employees, a premium refund plan is combined with individual health insurance a breeze.
companies with 50+ FTE employees should have a cost analysis to the costs and benefits of (1) provides group health insurance, (2) and has nothing, or (3) to accept all applicable tax penalties and provides compare premium refund plan this example of a premium refund plan and premium tax credits.
see and see how this would work in real life.
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