Health Insurance

Can I offer a health insurance stipend to my employees?

The short answer? Generally no. It is not compliant to reimburse your employees directly for the cost of their individual health insurance plans. The only way to provide funds for your employees to pay for their own individual health insurance is through a Health Reimbursement Arrangement (HRA – also called a Health Reimbursement Account). And of course, you can always pay your employees more if you are worried about their ability to pay for their living expenses.

This article provides general information and shouldn’t be construed as legal, benefits, or HR advice. Benefits and insurance regulations may change over time and may vary by location and employer size. So, please consult a licensed broker or appropriately certified expert for advice specific to your business’s benefits options.