President | Founder, CLM Insurance Group, Delray Beach, FL
Purchasing health insurance for an LLC is no different than applying for an individual or group health insurance plan. If the LLC has few or one one employee then individual policies would make the most financial sense. If the LLC wants to provide benefits for all its employees then either a small group plan or a defined benefit plan will make sense.
Group's plans require an in depth fact finding analysis to uncover the true needs of the group. Important factors include:
Size of the group
Number of employee participating
Amount employer wants to subsidize - if any?
Type of benefits
Are employees local or spread out among states
The new trend in 2014 for small group is setting up a defined contribution plan (section 105 plan) where the employer subsidizes a set amount to employees tax-free and the employees use that money to offset their health insurance premium, costs etc for the individual plans they purchase.
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Group's plans require an in depth fact finding analysis to uncover the true needs of the group. Important factors include:
Size of the group
Number of employee participating
Amount employer wants to subsidize - if any?
Type of benefits
Are employees local or spread out among states
The new trend in 2014 for small group is setting up a defined contribution plan (section 105 plan) where the employer subsidizes a set amount to employees tax-free and the employees use that money to offset their health insurance premium, costs etc for the individual plans they purchase.