Is Group Health Insurance Costing You Too Much for Your Construction Business?

April 9, 2018

Is Group Health Insurance Costing You Too Much for Your Construction Business?

With the cost of group health insurance plans increasing, small construction business owners are looking for ways to provide health insurance at an affordable cost.  Fortunately, there is an alternative called the Small Business HRA that benefits not only construction businesses, but also the hard-working employees. Partner Ian Grimbleby says, “It allows employees to select a plan that meets their needs instead of selecting a one-size-fits-all plan and provides tax benefits to both parties.”

What is a Small Business HRA?

It’s a 100% tax-deductible option that allows businesses with less than 50 full-time workers to reimburse all employees for qualified individual health insurance and medical expenses. Businesses must ensure that the same reimbursement terms and amounts are offered to all eligible employees and comply with the minimum medical coverage amounts set forth by Patient Protection and Affordable Care Act of 2010 (Obamacare). Construction companies who have gone the reimbursement route saved a monthly average of 23% on single employees and 49% on employees with a family,according to a report from Zane Benefits.

How can businesses fix their costs with an HRA?

By giving employees a monthly medical reimbursement, which as stated by the IRS is capped at $5,050 for a single employee and $10,250 for an employee with a family, employers can better plan their expenses.

Just as any health insurance related expenses incurred are 100% tax-deductible, so are HRA payments; and the reimbursement that employees receive is non-taxable because it is reimbursing expenses for health insurance or medical expenses.

Our construction team is always happy to answer further questions about an HRA or other options.  Visit us at

200 West Roseburg Avenue
Modesto, CA 95350

(209) 527-4220 (phone)
(209) 527-4247 (fax)


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