An individual health insurance plan is a great option if you are not covered by an Employed Plan, Medicare, TRIcare, or Medicaid. The Affordable Care Act marketplace offers high-quality coverage for Individuals and Families that are unable to obtain affordable coverage elsewhere. The categories to choose from are:
- Bronze: The insurer pays 60 percent and you pay 40 percent.
- Silver: The insurer pays 70 percent and you pay 30 percent.
- Gold: The insurer pays 80 percent and you pay 20 percent.
- Platinum: The insurer pays 90 percent and you pay 10 percent.
- Catastrophic: The plan pays less than 60 percent of the total average cost of care on average. Only people who are under 30 years-old, or qualify for a hardship exemption.
You may wonder what else is new with health insurance for individuals and small businesses. Well, now if you are self-employed you can deduct 100 percent of the premiums you pay for medical and dental insurance as well as qualified long-term insurance for yourself and dependents. When you file your taxes you can claim health insurance premiums on form 1040, line 29 instead of on Schedule A.
The main advantage of claiming your premiums directly is line 29 is 100 percent deductible. The individuals who can claim health insurance deductions are:
- General partners.
- Limited partners who are receiving guaranteed payments.
- Sole proprietors.
- People who receive wages from an S corporation in which they held more than 2 percent of the shares.
Many small businesses face the challenge of reducing their spending on health care. According to the Bureau of Labor Statistics, only 57 percent of employees at companies with 100 employees or fewer have access to employer-sponsored health insurance. Here are 5 options small firms can consider when they attempt to lower costs.
Professional Help: Find a broker that understands the process, Tax Credits, Tax Deductions, Cost Sharing Reduction and the income limits for these benfits. A Professional can also guide you in selecting a plan that will fit into your budget. When you hire an Insurance Specialist from the Wealth Guardian Group.
The SHOP: This is the Small Business Health Options exchange. It is a federal or state-run marketplace you can use to define the amount of money you want to contribute to premiums.
Plan Conversion: Shift to the individual market because the employer contribution is not a requirement. Another advantage is workers who qualify for subsidies may end up paying less than $100 each month to cover their premiums.
Direct Primary Care: The premise is direct primary care providers charge patients a monthly fee for unrestricted access to their physician. They do not bill insurers or Medicare for visits. Combining it with a high-deductible plan is an excellent and affordable solution.
Health Care-sharing: The Affordable Care Act offers health care sharing ministries exemption from a penalty if they do not offer minimum essential coverage. Small to mid-size employers can offer health ministry benefits instead of health insurance benefits. The employees can receive reimbursement for the membership fees they pay to the ministries. IRS notice 2013-54 explains how you can integrate a health reimbursement arrangement into a company plan.
If you qualify, the self-employed health insurance premiums deduction is a very valuable tax break. The costs for health insurance continue to rise and a tax deduction can assist you with paying at least part of the premium cost. A business and employee benefits firm can provide insurance for your company. The staff takes the time to get to know you and your company and then determine the best option for your business. They provide Life, Health, Property and Casualty insurance to practically every industry and understand the needs of business owners. Their quote process is simple and easy. It allows you to choose the insurance that meet your needs. You will walk away with great savings and knowledge about how valuable your insurance policy is to your business.
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