Discussion Archives:Health Insurance Deductible

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Discussion Forum Index --> Advanced Tax Questions --> Health Insurance Deductible


Discussion Forum Index --> Tax Questions --> Health Insurance Deductible

JasmineCPA (talk|edits) said:

10 June 2010
If a client decides they are going to use a health insurance company with a $5,000 deductible and tells their employees that they will cover the final $1,000 should an employee hit the $4,000 mark, that additional money is not deemed income to the employee, correct? It would just be a HI subsidy?

I think that's what I am reading, wanted to confirm.

Harry Boscoe (talk|edits) said:

10 June 2010
Is the employer adopting a plan that will include a group health insurance policy for its employees with a $5,000 deductible, and also include the direct payment or reimbursement by the employer of an employee's [annual, I guess] medical expenses after the first $4,000 of the employee's deductible has been met but before the insurance coverage comes into play?

And are you asking how to account for the $1,000 when the employer pays it..."

JasmineCPA (talk|edits) said:

10 June 2010
Exaclty....thanks for restating.

JasmineCPA (talk|edits) said:

10 June 2010
Deductible by the company and treated as subsidized Health to the employee?

Belle (talk|edits) said:

June 10, 2010
If you search a bit, you'll find numerous previous threads discussing whether or not this "plan" must be in writing.

JasmineCPA (talk|edits) said:

10 June 2010
Not concerned with the 'writing' aspect of it.

JasmineCPA (talk|edits) said:

11 June 2010
making me sweat this out HB?

Harry Boscoe (talk|edits) said:

11 June 2010
Not sweating you out, Jas; I don't know the answer. Looks sorta like an uninsured component of a plan that's otherwise insured.

Kendrick (talk|edits) said:

11 June 2010
Can't you just get an HRA plan written up, and say in it all you will cover is the final $1000 of the deductible, or something or other? Then is seems like a slam dunk, charge the $1000 if incurred to employee benefits.

I recently used Core Documents Inc. to draw up a Sec 125 plan and an HRA plan. Rather cheap. I sleep better now that my client at least has written plans in case of an audit.

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