Health Insurance for Nanny

[Anonymous]

Anonymous wrote:MB here. I don't think this is a common benefit - at least not the way vacation/sick leave, paid holidays are. We did not offer to our nanny in her first year. We added it as an additional benefit in her second year.

FYI, it is something that you can add that has real value but does not come at a higher cost to the employer (as a raise would - with increased tax liabilities etc...), nor is it taxable income to the nanny. So it's kind of a nice thing to be able to offer.

In our case we do not pay the full cost, we contribute a set monthly amount (which ends up being about 75% of her costs). You need to keep in mind that the cost of health insurance can/will vary based on the individual's health, age, etc... and that can be an uncomfortable thing to get caught up in. I would recommend (if you decide to offer it now or later) that you decide on a set monthly amount you want to offer, rather than simply saying you'll cover insurance costs.

For tax purposes, to ensure the legality of it, you'll need some documentation that the nanny has health insurance (not just pocketing the money as extra income) and then write on the check what it's for (health insurance costs or something like that). Not likely you'd be audited of course, but we always felt better safe than sorry.

OP here - thank you for your thoughtful response! I really appreciate it!

[Anonymous]

Anonymous wrote:Who on earth would want a nanny without basic health insurance?

No one is stopping the nanny from getting her own.

[Anonymous]

Anonymous wrote:Who on earth would want a nanny without basic health insurance?

Agree. I ask all my household employee candidates this question and, if they have insurance from a spouse or individual plan, that is a big plus for them.

[Anonymous]

It'd be interesting to note how many nanny employers here don't get health insurance from their employers.

[Anonymous]

Health insurance is not commonly provided to nannies. It is a perk that is sometimes offered down the road in lieu of a rate increase.

[Anonymous]

Anonymous wrote:Health insurance is not commonly provided to nannies. It is a perk that is sometimes offered down the road in lieu of a rate increase.

But why is it not commonly provided? And why would something that is generally considered essential be held back to give later?? Why are we all acting like this is okay?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Health insurance is not commonly provided to nannies. It is a perk that is sometimes offered down the road in lieu of a rate increase.

But why is it not commonly provided? And why would something that is generally considered essential be held back to give later?? Why are we all acting like this is okay?

There is a great summary of the history of health insurance in the U.S. on Wikipedia if you really want to know the details.

[Anonymous]

Anonymous wrote:It'd be interesting to note how many nanny employers here don't get health insurance from their employers.

Anyone?

[Anonymous]

It is a very common perk in most salaried jobs so probably most MBs have it. It is NOT a common perk in hourly jobs which is why it is much more uncommon for nannies. Also there are benefits to an employer buying it for a pool of employees but the only benefit in the nannies's situation is that it is with tax free dollars. It is the same policy that would be available otherwise to the nanny. If my nanny asked to swap part of her salary towards health insurance so that the outlay for me was the same then I would do it. But it does not tend to be viewed as worth it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It'd be interesting to note how many nanny employers here don't get health insurance from their employers.

Anyone?

The parents' pay and benefits at their own jobs has nothing to do with the nanny's pay and benefits. Different jobs=different pay scales and benefit packages.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It'd be interesting to note how many nanny employers here don't get health insurance from their employers.

Anyone?

The parents' pay and benefits at their own jobs has nothing to do with the nanny's pay and benefits. Different jobs=different pay scales and benefit packages.

Oh come now.
You stopped short of saying it:
Different caste.
That hits the nail on the head.
Admit it. You think nannies don't have the same basic needs as you do. Even the coffee grinders at Starbucks get health insurance. We get it. Your coffee is more important to some of you, than your children.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It'd be interesting to note how many nanny employers here don't get health insurance from their employers.

Anyone?

The parents' pay and benefits at their own jobs has nothing to do with the nanny's pay and benefits. Different jobs=different pay scales and benefit packages.

Oh come now.
You stopped short of saying it:
Different caste.
That hits the nail on the head.
Admit it. You think nannies don't have the same basic needs as you do. Even the coffee grinders at Starbucks get health insurance. We get it. Your coffee is more important to some of you, than your children.

+1 nannies don't get sick didn't you know? And if they do, they owe society the decency to die quickly!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It'd be interesting to note how many nanny employers here don't get health insurance from their employers.

Anyone?

The parents' pay and benefits at their own jobs has nothing to do with the nanny's pay and benefits. Different jobs=different pay scales and benefit packages.

Oh come now.
You stopped short of saying it:
Different caste.
That hits the nail on the head.
Admit it. You think nannies don't have the same basic needs as you do. Even the coffee grinders at Starbucks get health insurance. We get it. Your coffee is more important to some of you, than your children.

+1 nannies don't get sick didn't you know? And if they do, they owe society the decency to die quickly!

+2 but minus the snark. Employees deserve health insurance. Whether they work at Walmart, as a nanny, or for a law firm downtown, this is a human need we all share. I rant about WalMart and what they do to their staff (and to our nation - look how much their employees receive by way of federal assistance!) and I'll rant about household employers thinking it isn't important too. I'm not suggesting, and I doubt anyone here is, that a nanny employer should make sure their single employee has a $600/month insurance plan with full prescription coverage and a tiny deductible, but I do believe they have an obligation to contribute towards the cost. It should be part of the initial nanny budget, imo.

[Anonymous]

Anonymous



Health insurance is not commonly provided to nannies. It is a perk that is sometimes offered down the road in lieu of a rate increase.

True. It's not a common perk.

[Anonymous]

Big difference between Walmart and Starbucks offering it vs a nanny family. Key issue remains that I think many nannies if given the option between X per hr plus health insurance and X+ per hr without insurance will choose the latter. Families often have a set budget for nanny cost and if part of that is dedicated to insurance it cannot be dedicated to wages.