(ClaimLinx) Why Big Employers Don’t Buy Insurance — They Use the Tax Code

🎙️ Ed Lyon | The Lyon Share Podcast — with Anthony McMahon (ClaimLinx)
Why Big Employers Don’t Buy Insurance — They Use the Tax Code

This clip explains a truth most people never hear.

Insurance is a tool for spreading risk.
When you don’t know who will get cancer, have a premature birth, or face a rare disease, you spread that risk across a pool.

For small companies — say 10 employees — the pool is too small. So they transfer that risk to an insurance company and pay for protection.

But once you’re big enough, the math changes.
The law of large numbers kicks in.

A company with 3,000 or 30,000 employees doesn’t need to hand risk to an insurance carrier. They can absorb it themselves and simply buy stop-loss coverage at a certain threshold — $50,000 or $100,000 per employee — to protect against catastrophic cases.

That’s why companies like General Motors don’t “buy insurance” at all.
They are their own health insurance pool.

And they rely on a simple but powerful rule in the tax code:
👉 When an employer pays medical benefits for employees, those payments are deductible to the company and not taxable to the employee.

This isn’t a loophole.
It’s how the system was designed.

The real lesson?
Healthcare costs aren’t just a medical issue — they’re a risk-pooling and tax-strategy issue. And once you understand that, entirely new options open up.

🎧 Listen now on Spotify:
https://open.spotify.com/show/24wK3waMRpFDTMlTJNjAih

#TheLyonSharePodcast #ClaimLinx #HealthInsurance #TaxStrategy #EmployerBenefits #RiskPooling
The Lyon Share Podcast is a practical, no-nonsense show focused on tax strategy, financial decision-making, and real-world planning for business owners and high-income earners.

Hosted by CPA and tax strategist Ed Lyon, each episode breaks down complex tax concepts into clear, actionable insights covering small business taxes, retirement planning, real estate strategies, IRS rules, and proactive year-round tax planning.

This podcast is for entrepreneurs and professionals who want to stop overpaying taxes, understand the rules before they change, and make smarter financial decisions with confidence.

Видео (ClaimLinx) Why Big Employers Don’t Buy Insurance — They Use the Tax Code канала Edward Lyon