Health Insurance Ideas For Nannies

Health Insurance Ideas For Nannies

Compliments of Breedlove & Associates, written specially for Regarding Nannies

I’m thinking about looking for a health insurance policy.  Is this something I can ask my employers to pay for?

Absolutely.  We recommend you research individual health plans from reputable providers in your area (i.e., BlueCross/Blue Shield, Kaiser, United Healthcare, etc.).  It’s best to find a local broker who will sit down with you to assess your needs and discuss coverage options.

Once you’ve selected a policy and determined your monthly premium, you can take that information to your employer.  Families can actually pay up to 100% of your monthly premiums tax-free.  This means that neither you nor your employer will be taxed on the contribution.  Negotiating health insurance as part of your compensation package is a great way for your employers to save money, and for you to take home more in your paychecks.

For example, Suzy and Sally each have a monthly health insurance premium of $200.  Suzy negotiated gross monthly compensation of $2,000.  Sally also negotiated monthly compensation of $2,000, which included her employer paying the $200 health insurance premium (so her monthly “taxable pay” is reduced to $1,800).  Here’s a comparison of their monthly income:

As you can see, Sally is taking home $40 more per month than Suzy by having her employer pay her health insurance premiums.

If you have any questions about structuring health insurance as part of your compensation package, please feel free to give us a call.