Insurance Articles

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Tips for CEO’s and Health Insurance Posted: 07 May 2013 12:35 PM PDT A CEO is at the head of the company. They conduct the day to day operations of a company. Whilst they employ managers to oversee most of the work, they’ll inevitably have to deal with the question of health insurance. With the US seeing a grand shakeup under ‘Obamacare’, CEOs need to become more aware of the health insurance question and how they should act in relation to it.Here are some tips on how to confront the issue as a company CEO. If you follow them precisely you should have no problems at all. Offer It It’s not a legal requirement for an employer to offer insurance, especially when it comes to small businesses. Smaller companies can get away with not offering any form of cover. Larger corporations have very little choice in the matter. You don’t have a great deal of say because you need to attract the right people. And the right people go to the company which takes the best care of them. At the higher levels of business, hiring the best manager can mean the difference between profit and loss. So, basically you are going to want to be offering health insurance to secure the people that you need. Minimum Cover Although you don’t have to offer any form of insurance, states have legislation on the minimum level of cover you have to offer if you do want to implement a plan throughout your company. Read through these guidelines before deciding to start an insurance scheme. If the guidelines stipulate you have to offer benefits which are just too costly, it makes no sense to launch the scheme. Contributions As a CEO, you will have to contribute a certain amount to any insurance plan. Again, states have differing legislation on the minimum percentage you have to offer. Generally, it’s between 10 and 25 per cent. Combine this with the requirement to have at least 75 per cent participation in a company and these costs can mount up. Seriously consider if the company can afford it first. Terminated Workers If you’ve fired a worker in the last few months, you should remember this worker will remain under your health insurance scheme. You can’t stop them from having cover for at least 18 months. In the meantime, you also have to contribute to their scheme and continue to collect premiums from them. Nobody will do this for you. It’s up to you to collect from them. If they refuse to contribute, things change and you can boot them off the scheme, but if they decide to remain you have no choice in the matter. Income Tax CEOs also have to deal with the tax arrangements of the company. When you contribute, you can reduce your tax bill by declaring any employer payments into the scheme as an expense. At the end of the financial year, your accountant can take this off of how much you’ve earned and how much you have to pay in tax. Bigger companies can save thousands of dollars by taking out insurance. When you consider the benefits of offering this type of insurance, it can really save you a lot of money over the long-term.

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