RMI 3501 Lecture Notes - Lecture 5: Progressive Tax

• School: Temple University
• Department: Risk Management and Insurance
• Course: RMI 3501
• Professor: Rob B.Drennan

Document Summary

Taken by an employer to endorse a plan can include selecting the insurer, negotiating the terms of the plan, limiting coverage to select groups or classification of employees, and assisting your employees with making claims for benefits. For purposes of the safe harbor, endorsement does not include making the plan available to your employees or publicizing the availability of the plan, collecting premiums through payroll, and submitting the premium payments to the insurer. Finally, under the safe harbor, employers are prohibited from receiving any compensation that exceeds reasonable reimbursement for collecting and remitting premium payments. The exclusion of employer contributions for medical insurance premiums is the largest health-care related tax benefit. Other smaller tax provisions include contributions to tax- preferred health spending accounts and deductions for self-employment health insurance premiums. Has contributed significantly to health care cost inflation b/c it has made health care exempt dollars much more valuable than salaried income.