Small Business Group Health Insurance
What You Need to Know About Small Business Group Health Insurance
Your employees are your greatest asset. As a business owner, you most likely already understand how providing health insurance for your business has a huge impact on attracting and retaining talented employees in your office, giving them greater satisfaction and peace of mind.
Whether you currently provide health insurance to your business or you are thinking about offering health insurance for the first time, there are a number of things to consider:
Are small businesses required to offer employees health insurance?
According to the insurance requirements of the Affordable Care Act (ACA), employers who have less than 50 full-time employees are considered to be a small business and are not required to provide group health insurance in 2020.
Though legally, small businesses aren’t required to offer health insurance, many do so anyway. Health coverage is one of the number one benefits employees want from their company.
Does my business qualify for group health insurance?
- Your business must have a minimum of one W2 Employee (other than yourself and your spouse)
- You must be able to meet any carrier-specific qualifications (i.e. employer contributions, tax documentation, etc.)
What are the perks?
- Competitive Premiums
- Group health plans have competitive premiums with a wider provider network than individual health plans. (See ‘What you need to know about Open Enrollment 2020’ for individual health details)
- Network Access
- With a group health plan, you currently have the option to choose from HMOs (Health Maintenance Organization) and PPO’s (Preferred Provider Organizations). PPO’s typically allow you access to a much broader network of primary care doctors, specialists, hospitals, and more. In 2020, Arizona only permits PPO plans with an employer-sponsored plan.
- Tax incentives
- Some small businesses may qualify for a tax credit that deducts costs of employee premiums from their federal business tax.
- Improve employee satisfaction
- Benefits are one of the top factors that new hires and current employees want. Being able to provide affordable healthcare to employees and their family provides them with a greater sense of security, ultimately improving employee satisfaction.
- Hire and retain key employees
- According to the Bureau of Labor Statistics in 2019, 52% of businesses with less than 49 employees offered health insurance to their employees. Providing benefits sets a business apart from competitors and encourages good employees to want to stay for the long haul.
- Not subject to ACA Enrollment Regulations
- As a small business, you can switch carriers or start a new plan any month. This flexibility allows you to have many more options as well as make changes if need be.
2019 & 2020 Changes
Upon renewal in 2019 or when choosing a plan for the first time in 2020, all employers in the state of Arizona will need to offer their employees COBRA.
COBRA allows individuals to maintain their group health insurance, and potentially vision and dental coverage after a job loss or other qualifying event. All of the premiums can be charged to individuals receiving COBRA continuation coverage. The employer pays nothing. COBRA requires that continuation coverage extends from the qualifying event date for a limited period of 18 or 36 months. The length of time depends on the type of qualifying event that gave rise to the COBRA rights.
How to get a free quote:
Providing insurance for yourself and your business has numerous advantages, but it’s also okay to wonder what the costs will be.
Desert Mountain Insurance Services is a no-fees brokerage, meaning we can shop around to the leading carriers to find a company and plan that fits your business’s needs and provide management of your accounts, again for no fees. We want to help you see what options are available while helping you make an informed choice that can benefit you for years to come.
Bureau of Labor Statistics: https://www.bls.gov/news.release/ebs2.t02.htm