Health Benefit Options for Your Nanny

Nov 9, 2018 | Health & Safety, Working as a Nanny

health benefit options for your nannyThe world of health insurance is complex and often frustratingly so. When families are looking for ways to help their nanny with health insurance, there are many options available that can provide nannies with funding to cover medical expenses, whether or not the nanny has her own health insurance. If you are looking for ways to offer health insurance, here are some health benefit options for your nanny.

Flexible Savings Accounts (FSAs)

  • Only employee money is contributed
  • For employee out-of-pocket medical, dental, and vision care expenses that are not covered by other
    insurance
  • Can also be set up for dependent care expenses
  • Allows up to $2,650 in pre-tax dollars to cover these expenses, divided into an employee’s regular payroll deductions

Health Savings Accounts (HSAs)

  • Needs to be paired with a high deductible plan
  • Money contributed is either pre-tax or tax-deductible depending on how it is set up
  • For out-of-pocket medical, dental, and vision expenses only – cannot be used for premiums
  • HSA limit is $3,450 single and $6,900 family

Health Reimbursement Accounts (HRAs)

  • Needs to be paired with a group plan
  • It is employer-funded and tax-free to the employee
  • Plan must cover at least two employees
  • Can be used for premium or out-of-pocket expenses, or a combination of both
  • HRA limit is $5,050 single and $10,250 family

Qualified Small Employer (QSE) HRAs

  • Needs to be paired with individual plans, including health insurance exchange plans
  • It is employer-funded
  • Plan can cover a single employee
  • Not available to employers with 50 or more employees
  • Can be used for premium or out-of-pocket expenses, or a combination of both
  • QSE-HRA limit is $5,050 single and $10,250 family

Premium Only Plan (POP)

  • Needs to be paired with a group plan
  • Lets employees purchase health insurance and other benefits tax-free, as the health premium is deducted before the taxes are calculated.
  • There is no annual limit
  • Sole proprietors, partners, or LLC members are prohibited by the IRS from participating in a POP

Have questions or want more information? Get a free quote and info from GTM Employment Benefits. They can help you figure out the best option for your nanny, plus they can help with other coverage like workers’ comp, disability, travel insurance, and more.

Recent Posts

Blog Categories