Small business health insurance also known as group health insurance is a type of insurance that small business owners provide for their employees. Small businesses are businesses with two to fifty employees and some of them may be eligible for Small Business Health Options Program or SHOP. This is a program created by the Affordable Care Act (ACA) and this program can give great and affordable plans for business owners. However, if you don’t qualify for SHOP plans you can always purchase them through private health insurance companies like Temmen Insurance.
How To Qualify For Small Business Insurance?
To qualify for Small business health insurance plans you need to have at least two employees (this doesn’t include you, your business partner, or family members) and no more than fifty employees. You’ll need to offer coverage for every employee who has full-time employment and is working at least thirty or more hours per week. At least 70% of your employers need to be enrolled in your insurance plan and good thing is that there is no enrollment period for small business health insurance so you can do it any time you want but your coverage will begin the following month.
What Should I Be Aware Of As Small Business Owner?
As a small business owner if you are eligible for this kind of plan you will need to know these things:
- Coverage– if you are eligible your coverage will be issued by the insurance company and your employees and dependants can’t be denied coverage based on their health conditions and they can always choose another plan without medical underwriting
- Premiums– as a business owner you will be responsible for paying at least half (50 percent) of your employee’s health insurance plan premiums
- Offering coverage is good for your business– it can provide you with tax benefits (only if you purchase it through SHOP) and keep employees happy, satisfied and productive
- Group coverage is good because it costs less but covers more
Types of Small Business Health Insurance Plans
There are five main types of health insurance plans for small businesses. These are:
- HMO or High Maintenance Organization Plan: This plan can keep you at a low cost if you use only doctors and hospitals within the provider’s network. Usually, it has the lowest premiums as well as deductibles and copays for doctor’s visits. You will need to determine a Primary Care Physician for this plan who will coordinate your medical needs which means that you would need a referral from your PCP to see specialists.
- PPO or Preferred Provider Organization Plan: with PPO you’ll not need referrals from PCP to specialists nor are you obligated to choose one. Also, you can go to out-of-network doctors but the costs will be higher than with in-network doctors. These plans may have higher monthly premiums, deductibles, copays, and coinsurance
- EPO or Exclusive Provider Organization Plan: with an EPO plan you will have a high-quality local network of doctors and hospitals but you’ll pay a higher deductible with this plan.
- HSA or Health Savings Account Plan: those are PPO plans that can only be used with a health saving account which allows you to save pre-tax money for some medical expenses in the future. But, to be eligible for this plan you need to have HDHP (High Deductible Health Plan) with a deductible of at least 2700$ for group coverage.
- Indemnity plans: you can coordinate your own healthcare with these plans which means that you can choose any doctors and hospitals you like and the insurance company needs to pay a part of your total medical charges. For some services, employees need to pay upfront and then file for reimbursement from an insurance company. They give cash payments in case of accident or serious illness but employees with pre-existing health conditions may not qualify for coverage.
Average Costs Of Small Bussines Insurance
The cost of Small Business Insurance Plans will depend on which type of plan you decide to purchase. However, as a business owner you’ll need to be aware of these health insurance costs for employees:
- Premiums: these are constant monthly payments to the insurance company and are deducted every month from the employee’s paycheck- the premium is standard which means that it is not based on each individual employer’s salary
- Deductibles: this is the amount that every employee is responsible for before the type of coverage you choose kicks in. After the deductible is met, your insurance policy pays for the rest of the costs
- Out-of-pocket costs: insurance doesn’t cover any out-of-pocket expenses so the employee is responsible for those costs alone. Those costs can include deductibles and copays. As an employee, you will need to pay a copay for a given medical service which is determined by the insurance policy (the insurance policy sets the price of the copayment).
To find affordable Small Business Health Insurance Plans contact us. We are a private health insurance company with licensed health brokers who can help you find plans that can keep you and your employees happy. Contact Temmen Insurance and let’s find the best plan for your small business which fits your needs and budget today!