Discussion Archives:Health Insurance Discrimination Rules (Group Plan)

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Discussion Forum Index --> Advanced Tax Questions --> Health Insurance Discrimination Rules (Group Plan)


Discussion Forum Index --> Tax Questions --> Health Insurance Discrimination Rules (Group Plan)

Hermie2000 (talk|edits) said:

29 November 2010
I have a client, S-Corp with 80 employees. All individual employees are covered by a high deducitble group plan through BlueCross BlueShield. Client has identified one employee as a "key employee" and wishes to offer an enhanced compensation plan. Employee indicated that coverage for her dependents as a strong need.

Question: Can the client offer tax deductible dependent coverage for this key employee without running afoul of discrimination rules?

Contacting BCBS to ask this simple questions results in BCBS instructing us to contact an employment attorney as they cannot comment!

I realize we could offer the employee a cash bonus for key employee to get her own coverage, but we want to avoid additional tax to employee through such a "work around".

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