Health Insurance options with small business HELP?
My husband works for the city and I stay at home. We also have a small part time home based business. The problem is that we pay $700 a month out of pocket for medical insurance to cover 4 people (2 adults 2 kids). Is there a way we can buy medical insurance through our small company and gain tax relief for the cost? Any other options because $700 is so much money when we are still paying $20- 30 co pays, $200 ER and have a 3000 year ded. Thanks for any help you can give
Many of us appear surprised that you are paying so much, given that your husband works for the city. Most municipal employees have a great deal on insurance, and great coverage to boot.
I am assuming that the city is making some contribution to the cost of coverage, and that your husband’s contribution is on a pre-tax basis.
Yes, you could get an individual policy for your family and pay for it through your business. The total cost of coverage can ge deducted on your taxes (Schedule C). The above is true, there may be little tax benefit to you, given that the city’s contribution is not taxable, and your husband’s contirubtion is pre-tax.
The only way this would work if you were to find an individual policy that would have a lower premium, but it would probably have an up-front deductible. These are good plans, and since you are self-employed, finding a plan that qualifies you to open a Health Savings Account is a great tax advantage also.
Contact a local, independent insurance agent and discuss availability and underwriting requirements of plans available in your area.
Lamar Alexander on Helping Small Businesses Buy Health Insurance
