What Is a Stipend

A stipend is extra money added to an employee’s paycheck. Employees can then decide how to use those funds, including applying it toward their monthly health insurance premium. Since it’s part of wages, the stipend is treated as taxable income, not employer-sponsored insurance.

How It Works for Your Employees

·         Employees are responsible for shopping for and enrolling in their own ACA-compliant health insurance plan.

·         They pay their monthly premium directly to the insurance company.

·         All Marketplace plans include free preventive services and cover pre-existing conditions without exclusions.

·         Depending on income, many employees may qualify for premium tax credits to lower their monthly costs.

Where We Help as the Broker
As your partner, we provide direct support to your employees. We will:

1.      Guide employees through the ACA Marketplace to compare plans that fit their doctors, prescriptions, and budget.

2.      Check for subsidy eligibility to maximize their savings.

3.      Assist with enrollment and renewal to ensure applications are accurate and coverage begins on time.

4.      Remain a point of contact year-round for questions or plan changes.

This way, your employees don’t feel left on their own to navigate a complex system — they’ll have licensed guidance.”

Why Employers Use This Approach

·         Simple & Flexible – You set the stipend amount, and we handle the education and enrollment support.

·         Cost Control – No unpredictable group premiums; you decide how much to contribute.

·         Employee Empowerment – Workers choose the coverage that best fits their household needs, with professional help.

·         Build Culture – When some employers can’t cover the full cost of insurance but want to provide benefits to be competitive in recruiting and retaining employees.

A stipend is a straightforward way to help your team with health coverage costs without the administrative burden of a group plan. And with me as your licensed broker, your employees will have expert, compliant guidance to shop, save, and enroll confidently in the ACA Marketplace.