top of page

Sample Policy for Reimbursement of Employee Health Insurance Premiums (Taxable to Employees)

This policy template provides a clear structure for health insurance premium reimbursement and ensures that both the employer and employees understand the process and requirements. Adjustments can be made according to specific needs or additional details your client might want to include.

CEO reading over the health reimbursement policy with employees

Health Insurance Premium Reimbursement Policy

Purpose: The purpose of this policy is to provide guidelines for the reimbursement of health insurance premiums that employees have paid out of pocket. This benefit is intended to support our employees in maintaining their health insurance coverage.

Eligibility: All full-time employees who have completed their probationary period are eligible to participate in the Health Insurance Premium Reimbursement Program.

Reimbursement Process:

  1. Documentation Required: Employees seeking reimbursement must submit the following documents:

  • A copy of the paid health insurance premium receipt.

  • A copy of the insurance policy stating the employee as the policyholder.

  • Any additional documentation that supports the payment of the health insurance premium.

  1. Submission Window: Employees have 60 days from the date of the premium payment to submit their receipts and required documentation for reimbursement. Submissions must be made through [specify the submission method - e.g., email, internal portal].

  2. Approval Process: Once documentation is received, it will be reviewed for accuracy and completeness. The reimbursement will be processed and paid within 30 days of submission approval.

  3. Reimbursement Amount: The reimbursement will cover 100% of the out-of-pocket health insurance premium, subject to company budget limitations.

  4. Tax Implications: Reimbursements made under this policy are treated as taxable income to the employee and will be reflected as such on the employee’s W-2 form.

Record Keeping: Employees are responsible for maintaining their own records of insurance payments and reimbursements as part of their personal tax records. The company will also keep detailed records of all submissions and reimbursements for compliance and auditing purposes.

Amendments to the Policy: This policy may be amended, modified, or terminated at any time by the company. Employees will be notified of any changes in a timely manner.

Contact Information: For any questions regarding this policy or the submission process, please contact [HR Department contact information or designated personnel].

4 views0 comments
bottom of page