How should one account for a company insurance scheme where staff pay in a premium and get a reimbursement from the enterprise’s own in-house insurance?
The firm is self-insured against medical costs. Employees contribute to a fund (or virtual fund) and medical costs are paid out of that fund. Because this is group insurance, this plan should be classified as HF.2.1 (private social insurance). The discussion to follow assumes that the insurance scheme is an integral part of the firm’s activity. If the plan has a separate fund that is distinct from the firm’s books, then it is appropriate to treat it as though it were purchased insurance. NHE attributable to a self-insured scheme equals the value of benefits paid out plus the administrative costs of the scheme. The employee contribution to the scheme (FS.2.2 x HF.2.1) equals the amount of premiums paid. Note that employee copayments do not enter into this calculation; they appear as FS.2.2xHF.2.3. The employer contribution (FS.2.1 x HF.2.1) is found as a residual.
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