Owning and running a small business is complicated—especially when trying to figure out a group health plan for your employees. However, having high-quality yet affordable employee insurance coverage is not impossible as a small business! It is much simpler than you may think.
Before we dive into how to shop for group health insurance, we need to go over some basic rules and definitions.
Group Health Plan Eligibility for a Small Business
There are two key eligibility factors for a business to implement a group health plan:
1. You are considered a legal business by your state’s regulations.
It sounds pretty self-explanatory, but it is still a box you need to check! To be considered a small business, you must have between 2 and 50 employees.
2. You have at least one full-time W-2 employee.
The one full-time employee cannot be you (the owner) or your spouse.
Federal regulations define a full-time employee as someone who works 30+ hours a week.
Few situational factors may come into play, such as your business type or the number of employees that will participate in the group health plan, but in general, if you check the two boxes above, you are good to start shopping for your plan.
Group Health Plan Options for Small Businesses
There are a few different plan options, such as a Health Maintenance Organization (HMO) plan, a Preferred Provider Organization (PPO) plan, and a Point-of-Service (POS) plan.
Here are things you should consider while shopping and deciding between these group health plans:
1. What do your employees need?
Perhaps prescription drug coverage is a top priority, or maybe you need to talk to your agent about other add-ons to customize your policy.
2. What can you afford?
One of the most distinguishing features of a group health plan is cost-sharing. Regardless of what plan you select for your business, small employers are not required to contribute to their employees’ monthly premiums. An employer may reimburse deductibles and copays to assist with employees’ out-of-pocket costs.
3. Do your employees have specific providers that they want to use?
Take note of the providers your employees prefer and make sure they are in the carrier plan network.
We understand how much you already have on your plate running a small business, so trust us when we say you don’t have to stress about shopping for a group health plan. Why? As long as you meet the two eligibility factors we mentioned at the beginning of this blog, you will be guaranteed coverage. That’s right; you cannot get denied coverage based on the health of your employees. Also, you can shop for a plan at any time!
If you work with an independent agent like us, shopping will be even easier! You would be working with a local small business that supports our local economy.
Contact your local Avery Hall office today in Easton, Maryland at 410-822-7300 or request a free group health quote here if you are interested in learning employee benefits for your small business.