Ask Terry Questions Small Biz Insurance

Small Biz Insurance

By Terry Savage on November 24, 2025 | Insurance & Annuities

Saw your article about small business insurance opportunities. Question: If the owner is an employee and is on Medicare and the company pays part of the health insurance premium for a second employee, can the company reimburse the owner/employee for part or all of his Medicare premium on a pre-tax basis?

Terry Says

If you have a C corporation and a medical reimbursement plan set up, the company can pay the premiums. This is an allowed corporate deduction if properly set up.
But this is NOT part of the Small Business Insurance special plan.

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