A&Ps and medical insurance.

Tom-D

Taxi to Parking
Joined
Feb 23, 2005
Messages
34,740
Display Name

Display name:
Tom-D
Those of us who are working small shops, How do you work medical insurance?

Is the shop responsible for providing it?

Shop is not a FBO, CRS or any other incorporated entity A&Ps are employed to maintain owners aircraft.

How should the medical insurance be handled?
 
The employer mandate only kicks in when you have 50 full timers working there. It's up to your conscience and business sense as to whether to provide it otherwise. Several carriers provide small business plans. Otherwise, you and your employees will have to pick it up on the exchanges.
 
If you are working for a small company, it usually is a poor quality health plan with the employer paying 0-80% of the premium.
 
If you are working for a small company, it usually is a poor quality health plan with the employer paying 0-80% of the premium.
In this case, it isn't a real company.
 
How should the medical insurance be handled?
Before the ACA it was not an issue for the small shops I worked with. Afterwards it was a goat f. Since most employer discounts started at the magic 50 number it became almost impossible to control costs from year to year. Some dropped it, some closed. One converted employees to contractors so they could access the marketplace exchanges.
 
It was no bargain for companies with 50+ employees either. We ended up casting around trying to find something and ended up going with a HDHP and comping the employees the deductible. Things didn't get any better after we became part of the massive Textron bureaucracy. You think there would be an economy of scale. Textron is self-insured and uses United Healthcare to administer it. Of course, they carefully determine what the suckiest commercial plan is and match that.

I just went on my wife's federal plan.
 
Several not-aircraft-related companies I've worked for have used services like Paychex Business Solutions or TriNet (I guess they're called PEO). So the employees are 'virtual' employees of one of those companies and bundle together all the companies they manage for health insurance and related matters. Not sure how bad the overhead is on something like that.
 
1099 or employee doesn't change whether it is a company or not. I can hire four guys to work for me as a sole proprietorship. The use of the word company (other than oddly "and company") implies a corporation. Sole proprietorships and corporations can have employees or independent contractors. The nature of the relationship is what determines if someone is legitimately an employee or not.
 
Back
Top