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Most small businesses find paying for healthcare for their employees challenging. But what if your small business could make money on its healthcare premiums?
That’s possible because of changes in the tax law and captive insurance, a way of insuring your employees.
At Taake Insurance, we advise certain companies to consider captive health insurance. If your company has:
- Healthcare premiums of $500K to $2.3M a year, and
- A five-year history of your employees filing 50 percent less in claims than your premiums and
- The cash to fund one year of premiums, then
We can help you set up your own health plan and get a recognized insurance company to administer it. Your subsidiary keeps the savings and, for up to $2.3 million a year, transfers them back to you largely tax-free.
What’s the catch?
You do need to have enough cash to fund a full year. You will need to have actual claims. The IRS looks at askance at 100% profitability. And you need to rely on professional actuaries to set your premiums. Setting premiums is not a DIY operation.
Thousands of firms across the USA self-insure. You can cooperate with other small businesses to self-insure together and make meeting capital requirements easier.
If you spend more than $2.3 million annually on healthcare premiums, Taake Insurance Agency can help you create a subsidiary that will work for you.
Since a national insurer will administer your plan, your employees will get all the same coverage as they do now. In many cases, your plan administrator may even be the company you have now.
Whether you run your business in Columbia, IL, or anywhere in the state, we can help you set up captive health insurance. Call us today to get started!
