There are several steps to help employees successfully navigate LLC health insurance. Health insurance plans and packages are an incredibly complex and challenging process. Before employees decide on a plan, there are several considerations to keep in mind. Understanding the positive and negative aspects of different types of plans will help you guide your employees through the process of choosing health insurance. There are several LLC online guides to help you and your employees appropriately navigate health insurance plan administration. Read on to learn about how to help employees navigate LLC health insurance.
In-Network vs. Out-Of-Network
In-network medical providers have preexisting contracts with your LLC’s insurance company, while out-of-network providers do not. This means that out-of-network care is often more expensive than in-network care. However, out-of-network is sometimes covered in the event of a medical emergency. If the employee you are helping wants to see an out-of-network doctor, they should find a plan that offers coverage for out-of-network providers. Often, this will be a PPO (Preferred Provider Organization) plan. If the employee is willing only to see in-network doctors, then an HMO (Health Maintenance Organization) plan would make sense. This type of plan is often cheaper and may be a better fit for them. Depending on the employee’s needs concerning in and out-of-network care, you can help them choose the best plan for them.
High Deductible vs. Low Deductible
Throughout navigating LLC health insurance option, consider a high deductible or low deductible option. A deductible is the amount the employee must pay before insurance starts helping them cover medical costs. High deductible plans have low monthly payments, but have higher out-of-pocket costs. These plans are beneficial for people who do not get sick often, do not anticipate large medical bills or expensive surgeries, and are willing to save money for emergencies. However, be sure to warn the employee that many people with this type of plan avoid going to the doctor to avoid the high upfront fees. On the other hand, low deductible plans have high premiums and lower out-of-pocket costs. These plans are beneficial for people with chronic conditions, or are at a higher risk of injury. By evaluating the employee’s unique situation, you can ensure that they pick the health insurance plan with the right deductible for them.
When understanding LLC health insurance, consider tax deduction implications. In most cases, your LLC will take care of tax deductions for the employees. Most premiums are paid with the employee’s pre-tax income. If this is not the case, you can urge your LLC to make this change. In the meantime, employees may be eligible to deduct medical costs on their own taxes. If the employee’s medical costs are greater than 10 percent of their adjusted gross income, they can deduct the costs. Be sure to look for the best ways to help employees maximize tax deductions. By understanding the employee’s situation and how your LLC handles health insurance premiums, you can help your employees save money on health insurance related taxes.
Saving Money In An HSA
To appropriately navigate the LLC health insurance landscape, it is essential to consider taking advantage of HSAs. An HSA (Health Savings Account) is an option you might suggest to employees with high deductible LLC health insurance plans. An HSA’s purpose is to help people save money for medical expenses and emergencies. Since high deductible plans have high out-of-pocket costs, an HSA can help offset the large fees the employee may receive. Employees with this type of account can also withdraws for non-medical expenses until the age of 65. For employees with a high deductible health insurance plan, you should strongly recommend an HSA. Making employees aware of this option is important. An HSA will help them manage future medical costs and put them at ease about their ability to handle potential emergencies. With your help, employees can make the most of their LLC health insurance.
Other Options For LLCs That Don’t Offer Health Insurance
If your LLC does not offer health insurance, you can still offer alternatives to employees. Companies with less than 50 employees do not receive penalties for not providing health insurance. Instead of offering health insurance, they may offer an HRA (Health Reimbursement Arrangement). Through an HRA plan, employees get a certain allowance from the company that is meant for medical expenses. An HRA is not the same as insurance, so employees must find their own individual health insurance. If your LLC does not offer insurance or an HRA, employees will also have to find individual health insurance. In this situation, the guidelines explained previously still apply. Using these guidelines, you can help employees choose a health insurance plan that works best for them, even if it is not through your LLC.
By remembering these five guidelines, you as an HR professional can help employees navigate LLC health insurance. Health insurance is an extremely complex, challenging, multi-step process. By comparing the benefits of in and out-of-network coverage and high and low deductibles, you can aid employees in choosing the health insurance that works best for them. Once they have chosen a plan, you can help them get the most out of it by discussing eligibility for tax deductions and HSAs. Even if your LLC does not offer health insurance, you can use the same guidelines to help employees find individual health insurance. Understanding LLC health insurance will allow you to help employees make informed decisions about their health insurance. Consider the points mentioned above to learn about how to help employees navigate LLC health insurance.