Depending on which person’s data you look at, the United States is home to millions of small businesses. In fact, according to the Small Business Administration, there are currently 32,540,953 million small businesses in the country, and small business health insurance is a major concern for them.
There are more than four million small businesses in California alone.
Of course, these numbers may vary depending on the criteria used to define a “small business,” such as number of employees, annual revenue, or industry classification.
For example, under the Affordable Care Act (ACA), small businesses are defined as those with 50 or fewer full-time employees (FTE). A full-time equivalent employee is an employee who works an average of 30 hours per week or more.
With so many small businesses in the country, it is almost certain that some owners are not fully aware of the basics of small business health insurance.
Small Business Health Insurance: 33,000 square feet of exhibition space
First and foremost, it’s important for any small business owner to understand that businesses with fewer than 50 full-time equivalent (FTE) employees are not obligated to provide health insurance for their employees under the ACA.
On the other hand, they are certainly capable and can reap many benefits by doing so. For example, the ACA offers health care Tax credits For small businesses that choose to offer health insurance plans for their full-time employees.
Small businesses may be eligible for a tax credit of up to 50 percent of the cost of health insurance premiums that they pay for their employees. However, there are conditions. To qualify for the tax credit, all of the following criteria must be met:
- Have less than 25 full-time employees (FTE)
- The average employee salary is about $56,000 per year or less
- You pay at least 50 percent of your full-time employees’ premium costs
- You offer SHOP coverage to all of your full-time employees. (NB: coverage no It must be submitted to dependents or employees who work less than 30 hours per week to qualify for the tax credit.)
Therefore, at this point you may be wondering what “shopping” is. The ACA established the Small Business Healthy Choices Programs—individually known as SHOP—to help Small businesses buy health insurance to their employees.
Stores are basically online healthcare marketplaces where small businesses can compare and purchase health insurance plans from different insurance companies.
The main benefit of going through a store is that it may be easier for you as a small business owner to provide health insurance for your employees and qualify for health care tax credits. And by providing access to health insurance, you can help your employees stay healthy and productive, which can benefit both your employees and your business.
Understand the terms of small business health insurance
Simply, Small business health insurance It is a type of health insurance that provides coverage for small businesses and their employees. It can also include medical, dental, and vision coverage for owners and employees.
Small business health insurance premiums It is the amount that you and your workers pay on a monthly basis to purchase coverage for medical, dental, and vision plans, although some plans are used on a quarterly or annual basis.
discount (discounts This is the amount you pay before your insurance starts covering the costs. These are often thought of as out-of-pocket maximums and are the most you’ll pay over the policy period (usually one year) before health insurance starts covering 100 percent of your health care cost.
co-pay Fixed amounts you pay for covered services at the time of care.
Co-insurance It is the percentage of costs that you pay after the deductible is met.
Lifetime limits It is the maximum amount your insurance will pay for covered services during your lifetime.
Medicines Handbook This is the list of prescription drugs your plan covers.
Types of health insurance for small businesses
When shopping for small business health insurance, there are four main elements to be aware of in regards to small business health insurance:
- Number of Employees
- employee premiums
- Shopping for coverage
Small business health insurance plans are designed specifically for small businesses.
There are several types of small business health insurance plans available on the market. The most common types include small group health insurance plans, health savings accounts (HSAs), and health reimbursement arrangements (HRAs).
Small group health insurance plans It is the most common type of health insurance for small businesses.
These plans are designed to cover a group of people, such as employees of a small business and their families. These insurance plans are usually more affordable than individual health insurance plans because the risk is spread across a larger group of people. Small group health insurance also offers a wide range of benefits, including preventive care, emergency services, prescription drug coverage, and mental health services.
Health savings accounts HSAs are a type of savings account that can be used to pay for medical expenses. HSAs are paired with high-deductible health plans (HDHPs), which are health insurance plans that have high deductibles but offer lower premiums. HSAs allow employees to save money on a tax-exempt basis to pay for medical expenses.
health reimbursement arrangements HRAs are similar to HSAs in that they are used to pay for medical expenses. However, HRAs It is fully funded by the employer It can be used to reimburse employees for qualified medical expenses.
Factors for choosing small business health insurance
When choosing a small business health insurance plan, there are several factors to consider. These include the cost of the plan, the benefits offered, the network of health care providers, and the level of customer service provided by the insurance company.
The cost of small business health insurance plans varies based on several things, including the size and location of your business and the age and health of your employees. It is important to compare the costs of different plans to find one that fits your budget. Also keep in mind that the costs involve more than the monthly payment.
The benefits offered by a particular small business health insurance plan can also vary, so it’s important to consider your employees’ specific health care needs when choosing a plan. For example, if many of your employees have chronic conditions, it might be more appropriate to consider a plan with universal coverage for prescription drugs and specialized care.
Also, the geographic coverage of a health plan’s healthcare provider network is an important factor to consider. Some plans may limit the number of health care providers covered, while others offer a broader network of providers.
The level of customer service provided by an insurance company is often overlooked, and is an important thing to consider. Small business owners should look for a company that provides responsive, quality customer service to help employees navigate the health care system. Customer service is paramount to business owners and HR staff as well.
JC LEWIS Insurance Services – Health insurance experts for small businesses
Another “key” health insurance fact is that you can reduce costs and save money by working with an experienced broker. And working with JC Lewis means we work for you, not the insurance companies. This means that we are able to compare the coverage of different insurance companies so that we can find you the best rates and coverage in the market.
In other words, we can provide you with unbiased, cost-effective, and best-fit health coverage policy recommendations.
JC Lewis Insurance, a family-owned company based in Sonoma County since 1979, is made up of expert brokers that offer small business insurance plans. For the past four decades, our mission has been to provide expert advice and assistance to small business owners of group health insurance and group medical plans.
In addition, our company only offers small business health insurance plans from leading health insurance companies that are licensed to do business in the states in which we operate.
We are licensed and approved by every insurance company to offer coverage to small group employers as well as complementary and prescription drug plans for seniors.
So, when you’re considering purchasing health insurance for yourself and your employees — and possibly vision and dental coverage — you likely have many questions and concerns.
We are happy to answer all your questions about health insurance coverage at JC Lewis Insurance Services, and you can be confident that we’ll help you find the right solution.