1. Introduction to Benefits of Small Business Health Plans:
Small business health plans are a type of group health insurnance plans or employer offered health insurance plans. The small business health plans follow the ACA rules in terms of coverage and underwriting. There are no medical questions involved or medical underwriting needed to issue a small business health plan. Many small business have no idea about the plethora of benefits these health plans can provide to their employees.
2. Small Businesses
Small businesses represent the majority of the capital gains in the USA. Many small businesses are offering job security and income to different number of individuals that cant get a job at a corporate level companies. Small businesses may have different tax benefits and relief protocols to ease thei day to day operations and annual cost. During the pandemic of COVID-19 we saw many small businesses affected with the surge of COVID-19 cases which eluded to lockdowns and businesss halting. Many employees were laid off and others chose to not work. However, everyone maintained or attempted to find a way to keep their health insurnace. If nothing before had proved the importance of health insurnace, the COVID-19 pandemic is a sufficient evidence.
3. Group Health Insurance or Employer Health Insurance
Employees can receive health insurance benefits for themselves and their spouses/children through their employer health insurance coverage. Employees may or may not pay part of the premium cost per month. Some employees cover the full cost of health insurance for their employees, while others cover to a certain percentage. Regardless of the business size , employers can offer health insurance benefits to their employees in any state. Small business health plans are offered from employers who do not have more than 50 full time employees. Once a business reaches 50 or more full time employees, then the group plan is considered middle market. A small business group health plan could be issued with as little as 2 full time employees who are not spouse/child/immediate family member.
4. Benefits of Small Business Health Plans:
So what are the benefits of offering small business health plans to your employees? Well, health insurance have become more and more important feature in the benefits portfolio, a candidate or an employees looks at to assess the job and the company. People have elected to choose a job with lower salaries but better healthcare benefits overall. The root issue is that the healthcare costs are extremely high and unaffordable in the USA. If you work and make an income above the federal poverty limits, then you do not qualify for Medicaid. Besides, buying a health insurance plan on the marketplace may be way more expensive and may not be accepted at all the hospitals. Thus, offering small business health plans to employees is beneficial, the say the least.
- Employees benefit from great networks similar to those offered in large groups.
- Employees can receive guaranteed health coverage for their spouses and children under 26.
- Employees can save on the cost of their healthcare insurance as the employer contribution will lower the premium.
- Employers could appeal more competitive in terms of recruiting and hiring talents.
- Employers can make current employees happy/happier by offering them great health coverage.
- Employers will save a lot of money on their income business tax, as premiums paid towards employees’ benefits are considered an expense
Where to get small business health plans?
Small business health plans can be issued by a licensed health insurance agent. Your health insurance agent can prepare a proposal to you with different carriers and plans for you and your employees to choose from. You can start a group health plan at anytime of the year. Generally, the start coverage date can be the first of the month or the 15th of the month. You need at least 2 full time employees to start a group health plan. One of the employees has to be a non spouse and non family member.
Click here to get a free group health proposal or contact a group benefits agent about your small business.