Medical costs in the U.S. are high, which is why a lot of employees look for a job that offers health insurance. Over 88% of people consider health insurance benefits when choosing a job. For companies, providing group insurance to
There is no specific law that requires employers to provide health insurance coverage to their employees, but there is a penalty.
employees costs a lot of money, so some companies opt out of providing insurance. But are they required to? Yes, and no.
Affordable Healthcare Act
There is no specific law that requires employers to provide health insurance coverage to their employees. However, in January of 2015, the Affordable Care Act, ACA, required that employers who have 50 or more full-time employees provide health insurance. If they do not, they will face a tax penalty.
According to the ACA, full-time employees are employees who work an average of 50 hours a week.
Group Insurance Penalties
If a larger company with 50 or more full-time employees does not offer health insurance, they are subject to IRS penalties.
The IRS will penalize the company if one or more of their full-time employees gets a premium tax credit for getting their own health insurance coverage from the Marketplace. The company can owe up to $2,500 for each employee.
The company must offer insurance to 95% of their employees to avoid a penalty, and it must be year round. If the business offers healthcare for some months, and not others, then they will face a portion of the annual penalty.
Small Businesses
Small businesses (less than 50 employees) do not have a penalty if they do not offer health insurance to their employees.
Small businesses are not required to offer healthcare coverage to their employees. Since they have less than 50 full-time employees, they will not face penalties. If a small business does not offer health insurance, then a person can seek their own health insurance plan from the Marketplace or a private company.
While there is no longer a penalty for going without healthcare coverage, it is important to seek out information on different plans. There are plans within your budget that will meet your needs and lifestyle. If you need help searching and comparing all the group insurance plans around, EZ.Insure can help. We offer local specialized insurance agents that can do all the comparisons for you, and just provide you the quotes. All for free! It’s that simple. To begin, enter your zip code in the bar above, or to speak to an agent, email [email protected], or call 888-998-2027. There is no hassle involved, and no obligation to buy, and no headaches. Just easy, fast, and free quotes!
Small business owners know the value of covering their employees. After all, everyone gets sick at some point. If you support your team’s wellness, you make a stronger team.
You might also see the value in comparing and then choosing the best option. Two of these are either QSERHA or group health insurance, but which one has the most value for your business? For the answer to that question, we’ll need to break each one down first.
It is important to sit down and compare all the options available to your business.
QSERHA
This choice was unavailable until now. The ACA has now widened the usefulness of HRAs. Previously, you couldn’t set up an account unless it was tied to a policy. For more info on this, read about 2020 HRA changes here. Thankfully, this puts a Qualified Small Employer Health Reimbursement Arrangement or QSERHA on the menu.
So, what does it offer for your business?
This option skips the sometimes expensive group health insurance plans. While you’re missing out on the robust coverage insurers provide, the cost-saving benefits might be redistributed amongst your employees.
With this HRA, you must follow the requirements: employees must already have minimum health insurance, and you have to set-up your HRA properly. Afterward, you simply make contributions to the account, and later, the funds will be available to help pay for your employee’s medical expenses, tax-free.
Group Health
It comes down to which is better for your business. To help guide your decisions, see what your answers to these questions are:
Do my employees need healthcare assistance?
Is everyone on staff covered by an HRA already?
Does my budget include funds for a robust insurance option?
After answering these, you should have a better idea of which option to go for. If not, then consider the following:
QSERHA
Group Health
Cost
You can choose how much you contribute to the account.
Premiums vary by provider but are generally more expensive.
Participation
All employees must be offered coverage, but they do not have to accept.
Generally, around 60% of your staff must be enrolled to qualify.
Coverage
Can’t be in tandem with group health.
Employers can choose to reimburse medical expenses or premiums.
Primarily covers medical, dental, and vision
Eligibility
1-49 full-time employees
2-50 employees
Note: some states requirements go up to 100
Hopefully, this chart helps guide your decision. No matter which you choose, remember that the health of your employees is important to your continued business. A healthy team is a happy team. However, if your budget allows, consider choosing the group health option. You’ll have an agent to help you with the tough questions plus the bonuses offered are well worth the price tag.
If you are looking to get more coverage for your company, EZ.Insure offers solutions. Your personalized agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected], or calling 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.
Open enrollment is defined as a period of time when an employee join your group health plan or make changes to their existing policy. If you have a Group Health policy, which you should if your business employs over 50 workers, then any changes outside of a SEP will need to be made during this open enrollment period. Your employees need to be notified so that they do not miss this opportunity.
Open enrollment is the standard period for insurance changes. Do you know the exact dates?
The unfortunate downside is that if the deadline is missed, then they must wait until next year. However, certain qualifying life events exempt an individual from this rule. You can learn more about that here. <link to SEP article>
For Employees
Open enrollment for the 2019 period will start Friday, November 1, and it will run until Sunday, December 15, 2019.
With your employment-based policy, your staff should receive reminders in the mail, but make sure to either talk to them one-on-one or send them an email yourself.
Health coverage is important, and taking the time to reach out will send a positive message to your employees. They will appreciate your knowledge, guidance, and interest in their well-being.
For Business Owners
You do not have an “open enrollment” period to make changes to your company’s group health policy. You can make changes whenever you’d like.
Knowledge is power! Keep in mind important dates when it comes to making policy changes.
If you want to change your business’ policy, you can (usually) cancel your coverage at any time, but the insurance company prefers to be notified at least 30 days in advance. It would be courteous to let your employees know as well.
For these changes, it’s good to review the pros and cons of joining an HRA or switching to a different policy. Both are valid options, but the choice ultimately falls on what would be best for your company’s future.
Don’t worry about big insurance decisions; EZ.Insure offers solutions. Your agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected], or calling 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.
Not convinced small business coverage is worth it? Find out why we think it is.
1. It’s Cake.
As a business owner, your greatest currency is time. So the last thing you want is to waste that on looking for the right group plan.
When you hire an agent, you hire a full-time tour guide committed to navigating you through the selection process. With demographics, health concerns, and company size to consider, there are plenty of factors that must be included in your final decision. An agent can explain the nitty-gritty details of selecting a plan that fits your company’s needs, instead of you spending an unbelievable amount of time trying to digest the vast sea of information. Consider them
An agent can explain the nitty-gritty details of selecting a plan that fits your company’s needs, instead of you spending a large amount of time trying to figure it all out
your “sparknotes” of insurance plans.
This connection is 1-to-1, because trust us – we hate spam calls as much as you do.
Connect With a Personal Agent Now
2. Less Money (From You), Less Problems.
One of the biggest misconceptions about purchasing insurance is the hefty price tag that comes along with it. And that can be true, if you go about the process in the wrong way. So we’re here to dispel that myth.
Compared to individual health insurance, high costs of one insured person have a smaller effect in a larger pool – in other words, more people are paying to support the few who use the benefits of being covered to their full extent.
With comparison shopping, you avoid that. You are guaranteed to find the right plan at an affordable price. You can contribute nothing to a plan – and it will still be beneficial for your employees. No risk is necessary.
It is important to keep in mind that you are not only the owner of your company; you are the owner of the plan selection.
Checking out your options is a great place to start.
3. “I Want YOU To Buy Health Insurance!”
You end up saving money by offering employees group insurance. Employer contributions are tax-deductible, employer payroll taxes are reduced by 7.65% of employee contributions, and more!
If you still don’t believe in the affordability of group health coverage, consider this – it’s on Uncle Sam. Two words for you: Tax. Benefits.
Here are the tax savings you get by offering group health insurance:
Employer contributions are tax-deductible
Employer payroll taxes are reduced by 7.65% of employee contributions
Employer workers compensation premiums are reduced
No payroll taxes and workers compensation premiums on money used towards health benefits.
And here are the tax savings your employees get by receiving group health insurance:
When employees buy health insurance on their own, they have to use post-tax dollars to buy it. They make money, the government taxes that money, and then they take the remaining amount to buy what they need.
When employees buy health insurance through a group plan, they pay for the insurance with pre-tax dollars. That can save them up to 30 to 45% on their health insurance premiums.
4. Healthy Employees = Happy Employees
You might not be able to buy the Beatles’ love, but youcan buy your employees’.
Studies show that small business health insurance plans increase employee loyalty and decrease turnover. There’s scientific proofthat purchasing insurance for your employees can increase retention and aid in recruitment. Mic drop.
In all seriousness, health insurance is a big deal for both employees and job seekers. For some, it’s even the deciding
factor between job offers.
Healthy employees means less visits, less appointments, and less sick days. What this means is more productivity in the workplace.
Providing health insurance, despite not being a large corporate powerhouse, shows how much you value your potential and current employees. Which – if you’re a good boss – is a lot.
5. And Happy Employees = Happy Boss
You can imagine that an employee with a burst appendix or an inflamed wisdom tooth might be a little distracted when calculating the day’s revenue. But only a little.
Employees who aren’t provided health insurance have an increased likelihood of avoiding doctor appointments or hospital visits. In short, they have an increased likelihood of being unhealthy.
Additionally, healthy employees means less visits, less appointments, and less sick days. If you focus on “saving money” at the cost of your employees’ health, we’re tellin’ ya, it’s just going to come back and bite you in the bottom.
Or your bottom line.
6. The Gift That Keeps on Giving
Cobra isn’t just a snake.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a health insurance program that allows an eligible employee and his or her dependents the continued benefits of health insurance coverage in the case that employee loses his or her job or experiences a reduction of work hours.
What Types of Insurance are Available and Why They Are Important
You’re ready to take the next step into improving your business through group health insurance plans. You’ve got your employee’s benefits in mind, but also your company’s bottom line. Both are important. So, here are the different types of insurance plans available to your company, and how exactly they’ll help you out.
Fully-Insured Employer/ Large Employer Group
Why You Should Choose This: You’re wanting a solid plan that provides the most coverage. This is if you’re wanting major medical or health maintenance organization (HMO) coverage.
Business planning is all about finding what works for you, insurance or otherwise.
What It Offers: A traditional policy that is common, so more support or offers from agencies. You also party directly to the agency.
Requirements: Just the basic group insurance requirements: be a business of two or more people and enroll during the specified period.
Small Employer Group
Why You Should Choose This: You’re a smaller company or a group in a larger company seeking a cheaper option. Insurance agencies can more accurately predict risks in a smaller group.
What It Offers: Cheaper options with higher coverage and the same policy for each employer.
Requirements: Basic group insurance needs met.
Health Maintenance Organization (HMO)
Why You Should Choose This: You want to pay for specific health services via monthly premiums.
What It Offers: More control when it comes to enrolling for general services.
Requirements: A good knowledge of doctors and care facilities as you will have to stay within a network.
Life, health, and any policy will require some old-fashioned form signing.
Self-Funded
Why You Should Choose This: You wish your company to be in complete control of the payment for coverage.
What It Offers: More control as your company is the one taking the costs.
Requirements: Basic group requirements
Association Group
Why You Should Choose This: You are not an employer, but you still wish to offer group health insurance to a set of people.
What It Offers: The ability to get group health insurance for a non-business type.
Requirements: Basic group insurance needs met.
Level Funded Plans
Why You Should Choose This: You wish to pay a monthly premium instead of an annual one.
What It Offers: A graduated payment plan instead of a lump sum at one time.
Requirements: Census information will be taken of the group you wish to be insured in order to determine your monthly rate for coverage.
Preferred Provider Organization
Why You Should Choose This: You’re wanting something similar to the HMO plan earlier but with more flexibility.
What It Offers: More choices when it comes to doctors and facilities with the risk of being more expensive due to administrative costs and negotiated services.
Requirements: Basic requirements met.
High-Deductible Health Plan with Savings Option (HDHP/SO)
Why You Should Choose This: You don’t think your employees will use medical services, so you trade higher deductibles for lower monthly costs.
What It Offers: Cheaper options at the expense of your employees. However, this may be paired with a health savings account to counteract the higher out of pocket costs.
Requirements: Basic group insurance needs met.
Let an insurance specialist help you succeed.
Your Agent
With all of these to take into account, it can get overwhelming quickly. An insurance agent is specially prepared to navigate these waters and make sure you’re getting the exact plan to fit your needs.
Sometimes, not all employees will want or need this coverage. After you take stock of your company’s team and needs, look to a specialist for a guiding hand.
EZ.Insure offers you another helping hand. Your agent will answer any questions you have, compare the plans for you, and even sign you up, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected], or calling 888-998-2027. EZ.Insure makes the entire process easy, simple, and quick.
