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I'm in the process of setting up a health insurance plan for my family under my small business (LLC). I am the sole owner, so there are no employees I have to worry about extending benefits to.
For a family that's in good health, what type of insurance structure makes the most financial sense, especially in terms of taxes? Am I better of getting a high-deductible (low premium) plan and setting up a health savings account (HSA), or should I go with a more standard plan? Our only real medical costs are checkups every so often, which are generally not treated separately in the HSA plans. All of the standard plans seem to have good rates for routine checkups that apply before the deductible.
If health insurance could be written off as a business expense, I'd happily go for a traditional plan, but since it's entered on the 1040, I can't seem to get a sense of which plan would be better for us.
The rates for the traditionally plans are much higher than the rates for a high deductible HSA plan. At least when I was shopping for health insurance I found that even under the worst case getting a high deductible HSA plan wasn't much different in yearly costs than a traditional plan. But if I just went to the doctor 1-2 times in the year the HSA was much cheaper. Perhaps it would be instructive to compare the costs of the best, most likely and worst cases and see which solution comes up better.
With a traditionally plan you are prepaying for your medical care, if you don't use it you lose it. With a HSA you are also prepaying but if you'd use it you get to keep it and can use it for retirement.
Do the HSA, with running a small business you must have a CPA that you trust so if still in doubt run the numbers with him, CPA's are amazing if their good some of the stuff they can come up with.
Google "LLC owner healthcare tax deduction". It looks like the owner of an LLC (unlike an S-corp) can deduct premiums to some extent.
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