Health Insurance Premiums

[mlauer98]

I recently started working for a company in Minnesota and will begin family health insurance coverage through Medica beginning May 1, 2010. My wife's company does not offer health insurance coverage, but they want to contribute to our family's health plan. Can her company pay money to my company to go towards the health insurance premiums? I had this arrangement with my previous employer and would like to know if there's any laws regarding this.

 

[cbg]

That is entirely up to your employer. It's up to them if they will allow it or not. There are no laws addressing this either way.

 

[pattytx]

Would this be in lieu of deducting from your paycheck?

 

[cbg]

Are you thinking pre- and post-tax, Patty?

I am too, which is why I doubt that the employer will agree. It's also a lot of work administering it. But I can't think of any law prohibiting it.

Neither is there a law requiring it.

 

[mlauer98]

Would this be in lieu of deducting from your paycheck?

The amount my wife's company would contribute wouldn't be enough to cover the entire premium, but it would reduce what is deducted from my paycheck by about half.

 

[pattytx]

So you would be paying less than other employees with identical coverage? I'm thinking the possibility of imputed income and possibly jeopardizing the 125 plan due to discrimination. I'm with cbg in that I don't know why your spouse's company would even consider this. Can't you be covered on her plan?

If they really really want to do this, they can pay her more (fully taxable) to partially offset your deductions in the family budget.

 

[mlauer98]

I'm with cbg in that I don't know why your spouse's company would even consider this. Can't you be covered on her plan?QUOTE]

They don't offer health insurance coverage.

A related question...Does anyone know of a savings account that money could be put into to pay for medical expenses? I'm familiar with HSAs and MSAs, but they both require a high deductible health insurance plan. I'd also like to avoid a Flex plan, if possible.

 

[Beth3]

Does anyone know of a savings account that money could be put into to pay for medical expenses? I'm familiar with HSAs and MSAs, but they both require a high deductible health insurance plan. I'd also like to avoid a Flex plan, if possible.

If you're asking about a tax-exempt deferral plan, those are your three choices: HSA, MSA, or a Flex Plan. Each has their pro's and con's.