Tax free individual health insurance allows employers and employees to take a tax deduction on employees’ payments for individually purchased health insurance products.
The general concept of tax free individual health insurance is that a company allows each employee to voluntary elect to reimburse themselves (tax free) for individually purchased health insurance policies. Employee generally save 20-40% of their health insurance costs in taxes, while employers save 7.65% on every dollar.
Tax free individual health insurance is the ideal benefit solution for employers that:
- Do not offer health insurance
- Have part-time employees who are not eligible for the group plan
- Have employees who want to purchase individual dental, vision and critical illness on pretax basis.
- Have employees who want to pay COBRA premiums on pretax basis.