Can ITIN Workers Get Health Insurance?

Navigating the world of employee benefits can be complicated. And one key question many employers face is, "Can my ITIN workers, or workers without social security numbers, be included in the company's group health insurance plan?"

At Baron Payroll, we get this question all the time, so we wrote this article to help clear things up.

Let's get into it.

What’s an ITIN?

An ITIN is a number issued by the IRS to individuals who need a U.S. taxpayer identification number but are not eligible for a Social Security Number (SSN). It's primarily used for employee tax purposes.

Are ITIN Workers Eligible for Health Insurance?

The possibility of ITIN holders getting health insurance through their employer hinges on several factors:

Completion of the I-9 Form: If ITIN workers fill out the I-9 form (including providing the documentation requested on the form) and are officially added to your payroll, they might be eligible for health insurance. The I-9 form is crucial for verifying an employee's identity and legal authorization to work in the U.S.
State-Specific Guidelines: Group health insurance eligibility can vary significantly from state to state. It's essential to understand the specific requirements and guidelines in your state.
Insurance Carrier Guidelines: Insurance providers may have their own rules about who can be covered under an employer's group health plan. These rules can differ based on your state.

A Closer Look at State Guidelines: The New York Example

Take New York as an example. In this state, an employee must work a minimum of 20 hours per week to be eligible for health insurance benefits.

However, employers have the discretion to set higher thresholds.

This means that if your business operates in New York and your ITIN workers meet these hour requirements, they could potentially be covered under your group health insurance plan.

Why It Matters

Offering health insurance to all eligible employees, including those with ITINs, is not just about compliance. It's about:

Supporting Employee Well-being: Health insurance is a vital part of employee welfare. Ensuring all eligible workers have access to these benefits is key to maintaining a healthy, motivated workforce.
Attracting and Retaining Talent: Health insurance benefits are a significant factor in attracting skilled employees and reducing employee turnover. Employees will change jobs, even for less money, to get group health insurance.

Navigating the Process

To effectively include ITIN workers in your health insurance plans:

Consult with Experts: Partner with knowledgeable professionals like your insurance broker to navigate the complexities of your state and carrier guidelines.
Educate Your Team: Clearly communicate with your employees about their eligibility and the benefits available to them, including group health insurance.
Stay Informed: Regularly update your knowledge of state laws and insurance policies that could impact your employees' eligibility.

And that's it!

At Baron Payroll, we believe in empowering employers to make informed decisions about their health insurance policies, ensuring they cater to the needs of their diverse workforce, including ITIN workers. The end result is to improve employee morale and bring more dollars to your bottom line.

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