Group Health Insurance

The insurance company will determine the final monthly cost for your group health insurance plan once your application has been reviewed and approved. Costs vary based on a number of criteria, including the size and location of your company, and the ages of your employees. As part of the Affordable Care Act, the health of your employees, including pre-existing conditions, no longer impact group health insurance rates.

Typically, individuals who are owners are classified as employees. This means that if you have at least one additional employee besides yourself, you are eligible for group plans in majority of states.

Even a partnership without any employees is eligible for group plans. This is because, by definition, a partnership consists of at least two partners, both of whom are considered “employees” of the company.

Businesses with fewer than 50 full-time-equivalent employees aren’t required to provide health insurance to their employees and won’t face tax penalties for not doing so. But that doesn’t mean small businesses should not, or will not, provide health insurance for employees. Many employers offer health insurance because it’s an additional benefit they can offer their employees to increase employee recruitment and retention.

Regardless of whether you provide health insurance to your employees, it is crucial to inform your employees about their responsibility to secure health coverage as mandated by the Affordable Care Act. Additionally, it is important to communicate to your employees that they have access to guaranteed coverage in the individual market and may qualify for government subsidies if the coverage you offer is determined to be unaffordable according to the law.

Normally, employers shoulder a minimum of 50% of the employee’s monthly premium. In such instances, the employee is responsible for the remaining portion of their premium, as well as the entire premium for any dependents they have.

The minimum employer contribution levels may vary across states and insurance companies. Moreover, certain employers choose to cover a larger percentage of the employee’s monthly premium and occasionally a portion of the premium costs for the employee’s dependents.

When applying, you have the opportunity to specify the portion of your employees’ and their dependents’ monthly premiums that you wish to cover.

Group health insurance plans will not cover for dental and vision, but these are often available as benefits that can be added to your group health insurance plan for additional fees.

Small business health insurance typically covers medical expenses for both the employer and the employee, such as doctor visits, surgeries, hospital stays, prescription drugs, and more. Depending on the plan you select for your business, coverage may include vision and dental care as well.