Small Group Insurance
Running a small business can be challenging, but providing healthcare benefits to your employees doesn’t have to be. Small Business Health Insurance is a great way to keep your employees healthy, happy, and loyal to your company. We offer a carefully selected range of group health insurance plans from reliable carriers, at prices that won’t break the bank.
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Why Group Health Insurance Matters
Providing health insurance to your employees can have many benefits for your small business. Here are just a few reasons why Small Business Health Insurance matters:
- Attract and retain top talent: Offering health insurance benefits can make your business more attractive to job seekers, and can help you retain your current employees.
- Increase employee satisfaction: Providing health insurance benefits shows your employees that you care about their well-being and can help increase job satisfaction.
- Improve productivity: When your employees are healthy and have access to preventative care, they are less likely to miss work due to illness. This can help increase productivity and decrease absenteeism.
- Tax benefits: As a small business owner, you may be eligible for tax credits and deductions when you offer health insurance benefits to your employees.
Contribution of the premium cost for employee-only health coverage
employees to qualify for small business health insurance
How does group health insurance work?
Securing coverage through a Small Business Health Insurance plan can prove more cost-effective than purchasing insurance individually. Here’s what you should keep in mind:
Coverage is guaranteed to be issued
You have at least one employee
You'll be required to contribute towards your employees' premiums
Coverage can be sought at any point throughout the year.
Group Health Insurance Coverage
If you qualify for a Small Business Health Insurance plan, coverage is usually guaranteed to be issued by the insurance company. This means that pre-existing medical conditions cannot be used to reject coverage for you, your employees, or their dependents. All eligible employees and their dependents have the option to enroll in the new plan, regardless of their medical condition.
Number of Employees
You may need to have at least one payroll employee to be eligible for small business health insurance coverage, but rules can vary depending on the state and insurer. A licensed agent can help you determine if you qualify for coverage in your area.
Employee Premiums
Typically, you’re required to pay at least 50% of your employees’ monthly health insurance premiums. However, the minimum percentage can differ by state or insurance company, and you may choose to contribute toward premiums for dependents.
Enrollment Period
As a small business owner, you can shop for Small Business Health Insurance coverage at any time of the year, without waiting for a special open enrollment period. After you purchase a plan, premiums are typically locked in for a year. During that year, you can add new employees and dependents to the plan or drop coverage for those who no longer work for you. You can usually renew your coverage at the end of the year or shop for a new plan.
Types of Small Business Health Insurance
When it comes to Small Business Health Insurance, there are a variety of options available. Here are some of the most common types of plans:
- Group Health Insurance: This is a type of insurance that is offered to a group of employees. It is typically more affordable than individual insurance plans and may offer more comprehensive coverage.
- Health Maintenance Organization (HMO): An HMO is a type of insurance plan that requires you to choose a primary care physician who will coordinate your healthcare services. You must receive care from providers within the HMO network.
- Preferred Provider Organization (PPO): A PPO is a type of insurance plan that allows you to choose your healthcare providers, but may charge you more if you go out of network.
- Point of Service (POS): A POS plan is a combination of an HMO and a PPO. You choose a primary care physician, but can also see providers outside of the network for an additional cost.
How to choose the right small business health insurance plan
To find the best health insurance plan for your small business, it’s essential to assess your needs. Here are some factors to consider:
Who Will Be Covered?
Determine who needs to be covered under the health insurance plan. Consider the needs of your employees and their dependents to find a plan that suits the diverse medical and financial needs of the group.
How Much Cost Sharing Can You Afford?
Remember, premiums for small business health insurance are paid by both employees and the employer. You need to consider how much cost sharing makes sense for your business.
What Kinds of Benefits Are Important for You and Your Employees?
Although federal privacy laws prohibit employers from inquiring about an employee’s medical history, it’s essential to ask your employees which types of benefits are important to them.
Comparing Small Business Health Insurance Options
Many factors need to be considered when weighing your small business health insurance options. At eHealth, we recommend using the following 5 criteria to find the best plans that match your needs:
Monthly Premiums – You need to know what you and your employees can pay on a monthly basis.
Deductibles, Copayments, and Coinsurance – You need to ensure that these types of payments will be manageable for you and your employees when you receive medical care.
Medical Provider Networks – If you already have a preferred doctor or facility, make sure they’ll be included in your new coverage.
Prescription Drug Coverage Use – See which plans cover the costs of certain prescriptions.
Coverage Add-ons – You can add things like vision and dental care to ensure your employees are fully covered.
FAQS
How much does health insurance for small businesses cost?
Once your application for a group health insurance plan is reviewed and approved, the insurance company will determine the final monthly cost. The cost is based on several factors such as the size and location of your company, and the ages of your employees. The health of your employees, including pre-existing conditions, no longer affects group health insurance rates due to the Affordable Care Act.
How much do employers pay for group health insurance? How much do employees pay?
Employers usually cover at least 50% of their employees’ monthly health insurance premiums. This means that the employee will pay the remaining amount of their premium, as well as the full premium for their dependents. The minimum amount that an employer is required to contribute may differ based on the state and insurance company. However, some employers may choose to pay more than 50% of the employee’s monthly premium or even contribute to the premium costs for dependents.
When applying for small business health insurance, you’ll have the option to specify the amount of your employees’ and their dependents’ monthly premiums that you want to cover.
Do group health insurance plans include dental and vision?
Group health insurance plans usually do not provide coverage for dental and vision care. However, you may be able to add benefit riders for these services to your group health insurance plan for an extra cost. After selecting a group health insurance plan, you can explore the available additional insurance plans or riders for dental and vision care in your location.
The Bottom Line
Providing health insurance benefits is an important decision for small businesses that can have a significant impact on the health and well-being of their employees. Understanding the needs of your employees and comparing different small business health insurance options can help you select a plan that meets the unique needs of your business. It is important to consider factors such as monthly premiums, deductibles, medical provider networks, prescription drug coverage, and coverage add-ons. Additionally, during the enrollment process, it’s essential to be honest and answer all questions to the best of your knowledge. Finally, small business owners should keep in mind that offering health insurance benefits can help attract and retain top talent, improve employee satisfaction, and ultimately contribute to the success of the business.
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