Group Health Insurance for Small Business: From Price to Coverage
Dan Levenson March 03, 2016
Finding group health insurance for your small business is a good way to reward your employees with the best possible medical coverage. Even if you’re a very small business with under 100 employees, you can sometimes still get group health insurance.
Despite new ACA rules saying you don’t have to get coverage if you’re that small, it’s still beneficial to give your employees more peace of mind.
Mostly, you nurture a better retention rate in your workforce when you provide group health insurance. Employees won’t want to stick around if they work under dangerous conditions and know they have no health care coverage.
Having health insurance also gives more incentive to your employees toward preventive care that wards off future illnesses. You’ll have healthier employees this way so you won’t have long absences.
Whether you provide group health insurance or not, it’s your responsibility to make employees aware of their health care options through the ACA. Otherwise, obtaining group insurance is a good way to start the year for your small business.
Let’s look at how it works, how much you may have to pay, and whether you can even qualify.
What Qualifies You for Group Health Insurance?
Your business is possibly so small, you’re not completely sure you can qualify for a group health insurance policy.
It is possible to get group health plans if you have at least two owners or employees in your business. This needs verification through all of your tax statements or federal return documents.
Yet perhaps you’re still confused whether you qualify as a true business entity at all. If you have a business license, you’re officially entitled to this insurance. The same goes if you’ve had articles for incorporation or organization.
All insurance companies offering group plans have different rules on employee contribution percentages. It all depends on your state and what’s currently available. Be sure to do your homework on contribution levels so your employees don’t get stuck with a percentage they can’t handle financially.
What Types of Group Health Plans Are Available?
ACA rules have changed how insurance companies provide group health plans. Nevertheless, you still have two main types of plans to consider. It once was that indemnity plans were overly common here in the United States. They provide better choices in doctors, though they do cost more.
The more popular choice now is a managed care plan. While you don’t get as much control over the doctor you want, you still save money on many out-of-pocket costs. There’s also less paperwork to deal with when signing up.
Whichever plan you choose, all plans now have to provide an Essential Health Benefits package to let you know exactly what’s covered for your employees.
The Cost of Group Health Insurance
The health insurance you choose has to analyze your group of employees to determine the cost of your premiums. Thanks to ACA rules, pre-existing conditions no longer matter on figuring your premium amount. Your insurance company can still base price on the ages of your employees, how many employees you have, plus the size and location of your business.
Once again, the minimum contribution level on your part depends on which state you’re in and rules of the insurance company. You still have the freedom to contribute more toward the premium if you want to. When you sign the application for your plan, you’ll have to indicate exactly how much you’ll contribute each month.
Let us help you find the group health plan your business needs. Contact us here at InsureYourCompany.com to use our reliable resources in getting the insurance and documentation your business requires for success.