When accepting a new nanny position, you hope to build a long-term relationship with the family and grow alongside the children in your care.
One factor that can significantly contribute to long-term retention and workplace satisfaction is access to meaningful benefits, including health insurance. Families who go above and beyond to support your wellbeing often create stronger, more lasting working relationships.
Receiving health insurance or healthcare assistance can provide peace of mind while also demonstrating that your employer values and respects you as both a professional and an individual.
Understanding these options can help you navigate benefit conversations professionally and confidently while also helping families make informed decisions.
How Families Can Provide Health Insurance
Domestic employers are not legally required to offer health insurance to household employees. However, many experienced domestic employers choose to provide benefits to attract and retain high-quality childcare professionals.
Here are four common ways families may contribute toward your healthcare coverage:
Contributing to an ICHRA
ICHRA stands for “Individual Coverage Health Reimbursement Arrangement.” With this option, your employer provides a monthly, tax-free allowance to help cover medical insurance costs. It is an ACA-compliant option that gives you flexibility in selecting your own coverage. There is no maximum limit to how much an employer can contribute.
The allowance may be used for insurance premiums or other medical expenses, including Medicare Parts A and B or Medicare Part C.
One limitation is that ICHRA only applies to individual health insurance coverage. You cannot participate in your spouse’s group plan unless your employer also employs your spouse. Employers must also offer the ICHRA contribution to every employee within a specific employee class.
Contributing to a QSEHRA
QSEHRA stands for “Qualified Small Employer Health Reimbursement Arrangement.” This allows employers to provide an annual, tax-free contribution toward health insurance premiums or other healthcare expenses, subject to current IRS annual limits. You would submit receipts for reimbursement.
Employees may choose to opt out of receiving QSEHRA funds. Similar to ICHRA, this option gives you flexibility in selecting healthcare coverage. However, QSEHRA cannot be offered alongside a group health insurance plan.
Employers must have fewer than 50 full-time employees in order to offer this benefit.
Paying Health Insurance Premiums Through a Stipend
If you are your employer’s only household employee, the family may choose to contribute directly toward your health insurance premiums. Depending on how the arrangement is structured, this approach may offer tax advantages for both you and your employer.
With this approach, payments are typically made directly to your health insurance provider. This method can help simplify documentation and provide protection in the event of an audit.
Providing SHOP Insurance to Household Employees
SHOP stands for “Small Business Health Options Program.” Through this option, employers establish a group policy using the official healthcare.gov insurance marketplace. If a family chooses this route, they must offer coverage to all employees.
In some cases, employers may qualify for a tax credit when contributing toward employee health insurance premiums.
Why Health Insurance Benefits Matter
Families who offer healthcare benefits often attract more experienced, knowledgeable, and qualified childcare professionals. These benefits can help create a more stable and supportive work environment while encouraging long-term retention.
As a nanny, understanding the available healthcare contribution options can help you have more productive conversations with employers during the hiring process or contract negotiations.
The first step in building a successful long-term working relationship is finding the right fit.
At Household Staffing, we work to place you with meaningful long-term opportunities. Our team takes the time to understand your experience, strengths, and career goals so we can connect you with positions that align with your skills, preferences, and professional goals.
Create your candidate profile with us today to get started.
