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Small business paying for employees’ ACA insurance

By Terry Savage on December 18, 2022 | Insurance & Annuities

Two of my employees have ACA (BCBS-IL) insurance, cut do not receive a subsidy for their premium. The business was paying their premiums directly to BCBS, but BCBS informed us that this is not allowed, since the policies were purchased through the marketplace. So the business pays the employees the premium amounts – which is taxed as income (and raises their income – approx $400.00+ a month each – to make them ineligible for a subsidy). Is this correct? Are we caught between a rock and a hard place? Does not make sense. Thanks.

Terry Says

Ugh — yes, that is true — and it is horrible! Have you heard of small business group insurance policies that allow you to pay the premiums pre-tax and get great insurance for your employees. I didn’t write about it this year, and that’s a shame because the enrollment period just ended last week. But if anyone can get you in under the deadline it is insurance specialist Alan Wishner. Contact him immediately at 847-624-3397.

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