Purchasing The Right Small Group Health Insurance Plan For Your Business
If you own a small business with at least one employee on payroll, you may be searching for the best small group health insurance options to keep you covered. Providing health insurance to your employees—whether they work part-time or full-time—is one of the important responsibilities you may choose to undertake as a business owner. Giving your small business employees the option to choose health insurance provided by your small company is a great benefit, especially if you’re hiring!
Choosing the right small group health insurance, however, can be a hassle. If you’re searching for private insurance plans, or are just getting started with group health insurance, consulting with a broker is a great option.
The Small Business Health Care Tax Credit
To qualify for SHOP, a small business must have at least one full-time employee other than owners, business partners, and spouses and other family members of owners and business partners.
See if you qualify for savings
Enrolling in a Small Business Health Options Program (SHOP) plan is generally the only way for a small business or non-profit to claim the Small Business Health Care Tax Credit. To qualify for the tax credit, all of the following must apply:
You have fewer than 25 full-time equivalents (FTE), employees
Your average employee salary is about $50,000 per year or less
You pay at least 50% of your full-time employees’ premium costs
You offer SHOP coverage to all of your full-time employees. (You don’t have to offer it to dependents or employees working fewer than 30 hours per week to qualify for the tax credit.)
There are many changes going into effect in the public health insurance marketplace, but these are a few key ideas to keep in mind as you prepare to provide group insurance.
1. If you have under 50 employees in your small business, you are not required to provide health insurance. You will not have to pay a tax fee for not providing health insurance, either. However, it’s always a good idea to offer health insurance coverage to your employees. It can prevent many headaches for those who work for you, and in some industries, on-the-job insurance is an especially enticing incentive to work.
2. By providing some basic info on your company, employees, and location, the health insurance company of your choice can provide you with a price. Your monthly rate for group health insurance cannot be affected by your employee’s current health or pre-existing conditions. That’s good news for both of you, the business owner, and your employees.
3. Working with a private insurance broker can help ensure you receive the best price for group health insurance. Because private brokers do not have contracts with any insurance companies and are not allowed to persuade you to buy certain plans, you are guaranteed to receive unbiased, clear advice on the best option for your business.