Health Insurance Premiums in LLC

[movingrightalong]

Wanted to share with the forum that I found a couple of interesting things as we're working with a broker to purchase private health insurance:

1. It's an option in our state (UT) to buy a "group" plan if you're an LLC with more than two managers. The plans look very similar to individual plans, but premiums are discounted by between 10% and 20% depending on which one you choose.

2. Confirm with your tax professional, but according to ours, it looks like the premiums will be deductible if the plan is purchased through the LLC (which is required to be eligible for the group plan mentioned in #1 above.)

I wouldn't have thought to ask about these options until the insurance broker mentioned them so I thought I'd pass along so you can check into whether similar options are relevant/ available.

Sorry if it's been covered before; a short search didn't show anything.


-movingrightalong

 

[pb4uski]

That's interesting. My state had something similar pre-ACA but it idn't have the two manager restriction. I had an LLC that was a member of the local Chamber of Commerce that allowed me to buy BCBS health insurance through the Chamber at small group rates. In our case my small group was DW and I and the LLC required that the employee/insureds pay 100% of the premiums (in other words, I paid them personally since the LLC didn't do any business other than belong to the Chamber).

As I recall, the premiums were similarly discounted compared to individual health insurance with similar coverage. The program went away when ACA was implemented.

 

[Retireby45ish]

I’ve often wondered if there were creative ways to use LLCs and such for things like this. I looked into whether there were tax benefits of holding or doing things in an LLc but was told by my accountant that everything flows through to ownership LLC so no reason to create one.

With ACA looks like this isn’t working in most states. But anyone else use an LLC to gain some tax or insurance efficiencies?