Group insurance policies are generally offered through your employer. Employees are given a few policy options from the insurance company chosen. Group policies are popular because the risk is spread over all of the members allowing companies to offer lower premiums. If you want cheap small business health insurance to offer your employees, shop around and compare companies.
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The Affordable Care Act will require employers with 50 or more employees to provide health insurance after 2014. Small businesses will not be required to do so under federal law but some states may still require it. The plan will implement tax benefits for small companies as well as an exchange program for employees who are not offered group insurance.
How do I find a good plan?
Trying to find health insurance for yourself can be confusing enough but what if you have to find a plan for your employees. You are faced with trying to choose the option that will fit the largest amount of people. You also have to consider state regulations because while you may not be required to offer insurance if you do there are set guidelines you have to follow.
Familiarizing yourself with state and federal guidelines should be your first step.
Every state has a Department of Insurance. They can provide you with guidelines and a list of companies licensed to sell group policies in your state. They also maintain records on complaints filed against an insurance company.
The next step to finding the a good health insurance company for small business coverage is to get quotes from several companies. Have them include different types of policies as well as rates. You can also look at package plans. These plans allow you to offer employees choices.
When comparing rates look at what coverage is included as well as how much money employees will have to pay for services. Look at what kind of copays and deductibles are offered under the plan. The best small group plan will be one that fits your company budget and meets employee needs.
Are there advantages of small group coverage?
Many small business owners wonder if offering a group health insurance plan is beneficial. There are many group health insurance business options. Group health insurance can be costly but there are benefits to providing employees with coverage.
The biggest benefit of offering small group health insurance is employee loyalty.
Health insurance used to be widely available from employers but in recent years fewer companies have been able to afford to offer coverage. Employers who have the best health insurance benefits have more applicants to choose from and retain their employees longer.
Employers can be required to pay a portion of their employees’ premiums. In most cases you will have to pay at least 50%. These premiums can be claimed as a business expense for tax purposes. This can be a huge tax break for small business owners.
Offering group insurance can save you money on your own health insurance. Many business owners who do not offer group plans have an individual policy for themselves. Group plans offer lower premiums to all the participants including the company owner. Group policies also tend to have better coverage than individual policies.
What if my employer does not offer insurance?
While getting group health insurance from an employer may be the easiest way there are other options available. Not all of these options are going to be available to everyone. Most of them will require membership or that you meet certain criteria.
Association group policies are health insurance plans offered to members of a particular organization. Many national professional and trade organizations offer plans to members. These groups will be based on the type of job you do or a specific hobby or activity.
People who are self-employed or freelance be able to join groups like the National Association for the Self-Employed. They offer the benefits of group insurance to people who work for themselves.
There may be local groups in your area that offer group insurance as well. Church organizations, commerce groups, and local trade groups will sometimes offer plans to members. If you want to find an association group policy look at memberships you already have.
Before you join an organization weigh the cost of membership and premiums against the cost of an individual policy. If you end up paying more to be a member and the only benefit you use is the insurance, you might be better off shopping for a low cost private health insurance plan.
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