What to You Guys do About Medical Ins.?

machine

LawnSite Member
Location
OH
I recently graduated from college and have no Medical Insurance. I am wondering which providers U recomend and what kind of rates u are paying. I am interested in Health/Dental/Vison for myself right know. I currently have independents and sub contractors working for us. If need be, I could put one or two on the plan, for a reduced rate. I do plan to impelment a employee benfit program later next year. I also concerned with the tax deductability of these expenses. I heard something about self-funding with a bond that is tax deductable. Your advice and comments would be Appreaciated.
 
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GrassRoots Lawn Care

Guest
We currently are covered under Florida Health Care Plans. Costs us $291.00 monthly and covers my wife and I. Dental costs us $175 annually but has very high co-pays. All medical insurance costs are 100% deductable as a business expense. <p>----------<br>Mike Reynolds,<br>GrassRoots Lawn Care, Florida
 

osc

LawnSite Senior Member
Location
southern ohio
Machine:<br>Take this advise and go get a good accountant, or if you have one then ask them to be a part of this decision. Especially if you plan on offering anything to your employees. The government determines what plans you can get before or after taxes and and if you need to include your employees or not.<br>Ask about:<br>1. Cafeteria plan.<br>2. Medical savings account.<br>3. If paying premiums from after-tax <br> money, what percentage of your premium <br> can you itemize or is your standard <br> deduction larger?<br>As far as providers, it varies from region to region. We have hospitalization for a family of 4 with $3,500 deductible for $186.00 per month through Nationwide. Max pay on office visit is $35.00 even before deductible. $20 max on prescriptions. Best policy I have found.
 
OP
M

machine

LawnSite Member
Location
OH
OSC, Haven't seen 9mm, but if I was in it, I don't rember any cameras fliming us. By-the-way the info was helpful, I will look futher into a MSA and low a monthy premium with a Heath Care Provider. Off to the Bar's...Later
 

TurfMan

LawnSite Member
Your Health care costs are only 100% deductable if you are incorporated. If you are a sole proprietor you only get a percentage of the premium on yourself that is moving to 100% in the next 5 years, the employees are at 100%. Another thing to watch for is the subcontractor deduction, because of the rules that apply as to whether or not they are a sub or employee, if you include them on your health they may be employees and there for need to be included in all other wage based costs(work comp,payroll,etc)<p>----------<br>thats my 2 cents, <br>mike
 

MRPLOW

LawnSite Member
If you are sole proprietor the deduction for health insurance is 60 % of what you pay, but this does not come off your business expenses for tax purposes, you still have to pay the full 15 self employement tax, it only comes off as a personal deduction, the other 40 % can also be deducted on the itemization part of your return if you qualify under medical expenses, again as a personal deduction. It will be 70 % in 2002 and 100% in 2003.
 
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