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Health Insurance

Discussion in 'Business Operations' started by Dallas Turf, Feb 11, 2007.

  1. Dallas Turf

    Dallas Turf LawnSite Member
    Messages: 245

    I am looking at getting health insurance so my wife can have more flexibility with her job (they provide it now). What are you guys paying for yours? Who is it with? Do any of the landscape trade organizations (PLANET and others), have any group programs worked out?
  2. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Horizon BC/BS...expensive...$464 a month for just me
  3. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,808

    $850/month Blue Cross Blue shield, family plan
  4. twj721

    twj721 LawnSite Senior Member
    Messages: 619

    that is the only reason that Iam driving a school bus is for the insurance we have Blue cross blue shield and has great coverage benfits I went witht the plan 3 which all I have is a 30. co pay and no dedutable when I reach $1000.00 out of pocket on my 20% it goes to 100% pay already hit that as I am in outpatient rehab for my neck and carpeal tunnel in both wrist It cost me $221.00 a month
  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    I am looking at one of those HSA's.

    Basically it is a high deductible plan, where you put the deductible in an IRA type account.

    I am 41 smoker and my cost would be around 225 per month plus I have to put about 200 month in savings. If I don't spend the savings, I get to keep the money.

    Why pay twice as much for a lower deductible if you don't use it.

    Also, I can use the savings for things like Dental and Vision without buying the insurance.
  6. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Messages: 5,407

    I just changed to a high deductible insurance w/ HSA for $170 for me and my wife. I haven't started putting money in the HSA yet. My deductible is $5k, which anything over 5k for that entire year is covered by the insurance company. I just hate throwing away money on insurance that I may use or may not. Just have to keep a little money in the bank. This is the cheapest I have found.

    What is your understanding on the HSA? I heard about it on the Clark Howard show how it was excellent for the self-employed, but I haven't spent alot of time researching it. Isn't it tax deductible? or is the interest tax deductible? is it a compound interest rate like an IRA? Can this money only be used for health issues or can it be applied to other things?
  7. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    You must be pretty young but yes the HSA is a great plan. Mine is over 200 for me alone, again this is age related.

    BTW, this HSA portion is not pre-tax for the self employed, but it is tax deductible at the AGI 7.5% rule. If you offered this to your employees, they could take the whole thing pre-tax. You as the employer could then match some, which you would because you don't have to pay Social Security on their pre-tax deductions.

    I am not an accountant by the way so double check my tax advice.
  8. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Messages: 5,407

    Yes I am 24, so I am not getting raped yet. So if I deposit $200 a month, by the time I have health problems it should be worth a good bit(if it has compounding interest like IRA?

    Can you expand on the AGI 7.5% rule? I have a pretty good accountant, so I rely on him a good bit. This tax code is alot to comprehend. I wish we could just get "the fair tax" passed. That would simply things a bit!
  9. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    people who itemize expenses greather than the standard deductions do so in the 1040. Health expenses are deductible if they are greater than 7.5% of your adjusted gross income. The savings acount portion is subject to this 7.5 Rule if you are self employed.

    If your wife works, her 200 per month may not be subject to that rule.
  10. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    Let me expand and see if thise helps.

    lets say your adgusted gross income is $30,000.00

    7.5% of 30K is 2250.

    You put in 2500 in your HSA so only 250 is tax deductble. None the less, you have put the money into a good savings account and lowered your bill on insurance. I think the other 2500 for your wife is tax deductible.

    It is a good plan to put your employees on because all of it is pre-tax if you are inclinded to do such a thing.

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