more-arw search

Q&A Forum

Employer Paid Healthcare Out-of-Pocket Costs... taxable?

We have a complex health insurance situation. We not only pay the health insurance premium, but we also reimburse our employees for any costs which are applied to their Out-of-Pocket maximum. We have been utilizing an HSA for these reimbursements. The problem is that I'm constantly being questioned regarding this. My boss wants us to just pay the employee directly for the medical expenses incurred, and avoid anyone having to pay taxes on the reimbursement. I'm fairly certain that the IRS would not take kindly to such an arrangement, but I cannot find CLEAR guidance on the IRS website... CLEAR to the point of making sure everyone who is questioning our current practice understands what is and is not legal. Can anyone help me with this?

Answers

Anonymous
(Chief Administrative Officer) |

You might find this article (and the company) helpful in resolving this issue: http://www.zanebenefits.com/blog/bid/153069/Why-Businesses-Should-Never-Pay-Individual-Health-Insurance-Premiums. Although the article is about not paying premiums, the information is relevant to paying for medical expenses as well.

Disclaimer: I don't work for Zane Benefits and don't benefit from sharing this info. I'm actually considering them as a vendor for my company.

2511 views

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.