Today the U.S. Department of Labor released yet another notice/guidance/ "FAQ" instructing employers that "an employer health care arrangement cannot be integrated with individual market policies to satisfy the market reforms." Obstinate vendors continue to push their high cost TPA services and claim that an employer can cancel a [...]
Perhaps a company could give employees a salary bonus or "taxable discretionary wellness stipend" so that employees can buy their own individual medical coverage. If you’re considering a salary bonus or "wellness stipend" for employees to purchase their own individual medical insurance you should consider the following... Tax and worker’s comp savings are THE major reasons that companies sponsor group health insurance plans rather than offering a taxable stipend or salary bonus...A salary bonus or taxable wellness stipend for health insurance is extremely tax inefficient and forces employees to purchase inferior health insurance plans in the individual market.