Because nannies work for private households, they don’t qualify for group coverage. They’re required to purchase individual policies. The fastest and easiest way to price the policies available in your state is to visit ehealthinsurance.com. Now for the tough question: who pays?
I recommend every full-time employer provide health insurance coverage for their nanny. Or at least contribute to the cost of coverage. I know this is an expensive undertaking but I believe the benefits outweigh the costs. Before you dismiss the idea altogether, let me give you three reasons I think it’s a smart move.
First, it’s not as expensive as you might think. The contribution you make to your nanny’s health insurance coverage is considered non-taxable compensation. That means no taxes for you or your nanny on the premiums you pay. Plus you also get a tax credit at the end of the year. So if you structure your nanny’s wages and benefits in the right way, it works for both of you.
If you’d like to get more information on how much offering this benefit would actually cost, give Breedlove and Associates, one of my favorite nanny payroll services, a call at 888 Breedlove. They offer a free consultation and will run the numbers for you. They’re smart and helpful and don’t believe in the hard sell. I promise.
Second, it’s a good employer decision. A nanny that’s able to visit a doctor and afford needed prescriptions will stay healthier and miss less work. Including health coverage in your benefit package attracts a higher quality caregiver that’s looking to stay in a job long term. And an employer that offers fully or partially paid health insurance shows her nanny she recognizes her as a professional and values the job she does.
Finally, your nanny needs health insurance and if you don’t provide it, there’s a good chance she’ll go without it. Is it an employer’s responsibility to provide coverage? Not fully. But the reality is most people that have private coverage get it through their jobs. Choosing to work as a nanny shouldn’t mean a caregiver gives up that option.
The informal nature of in-home care makes it easy for many to dismiss the idea of offering nannies workplace benefits. But being a nanny is a real job. For many, a career. Choosing nanny care for your children makes you a real employer. I believe providing a benefit package that includes health coverage is a natural extension of that employment relationship. And a win for both sides.