THIRP: Tax-free Health Insurance Reimbursement Plan.
Are you a small business owner? Are you worried about what the Affordable Care Act will mean for you, your business and your family? Are you looking for a way to provide your employees with not just a qualifying health plan, but with a health plan that will truly benefit them and that won’t run your company into the ground? A THIRP may be just the solution you’re looking for.
A THIRP is not a health insurance plan, but rather a reimbursement plan that will help your employees—both full-time and part-time—pay for their health insurance premiums. This way they get to choose a plan that works best for them and their families, rather than having one be chosen for them. What’s more, the reimbursement they receive is tax-free, meaning that it’s not included in their taxable income and thereby reduces the amount they receive on paper, allowing them to better qualify for subsidies.
As the business owner, you can reimburse yourself for money spent on benefits for both you and your family members. By doing this, you will lower your FICA/self-employment taxes and end up saving hundreds of dollars each year.
To learn more about who qualifies for a THIRP, what the benefits of enrolling in a THIRP are, and how a THIRP works, visit http://www.hsaforamerica.com/HRA.htm.
Wiley Long is President of HSA for America, and a passionate advocate for consumer-based solutions that will improve price transparency and lower health insurance and medical costs for people purchasing individual and family health insurance plans.