S Corporation shareholder health insurance reimbursement
Saw your article about small business insurance opportunities. Question: If the owner is a greater than 2% S Corporation shareholder and an employee and is on Medicare and the company pays (1) no other employer insurance for non-owner employees or (2)part of the company sponsored 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 in both cases?
Terry Says
Not under this plan! This is a program to offer regular health insurance products, comparable to those offered by any business in your state, to employees — without requiring an employer contribution.
Now, if you are a C corporation, with a health cost reimbursement plan, it’s possible that your supplement premiums and other uncovered medical expenses could be covered by a health cost reimbursement plan. I’m not sure if this extends to S corporations, so I would check with your corporate attorney.
