Doesn’t that seem like an oxymoron? A Group of One?
It is possible with employer sponsored healthcare. Let’s look at the definitions of an employer group, the employer/employee relationship and other considerations needed to qualify.
The account must be an entity that is formed for reasons OTHER than health insurance with an employer-employee relationship existing that is bound together for financial gain. So a for profit business, not for profit corporation, LLC, partnerships and sole proprietors can qualify. Fraternal organizations, clubs or other similar organizations typically will not qualify.
Next, the account must have AT LEAST one common law employee other than the owner or spouse of the owner. To put it simply, ‘Do you employ a W-2 employee?’ A common law employee is often defined as one that is paid wages with income taxes, Social Security and Medicare taxes withheld from wages. For example, a farmer and his wife will both work in the farm together but the spouse is not often paid through separate wages with taxes withheld. This family would not qualify for employer sponsored health care. However, if the farm is a corporation and both the farmer and spouse are paid W-2 wages, then they may qualify for healthcare sponsored by the business.
Since the individual health market is so volatile with carriers withdrawing from the individual markets starting in 2018 and with past increases anywhere from 18% to almost 50% per year, maybe it is time to look at employer sponsored healthcare. There is more stability, a number of plan designs available and employer sponsored health plans can begin anytime throughout the calendar year. Call Health Insurance Advisor and let’s discuss the possibilities. Could YOU be a ‘Group of One’?
