It probably goes without saying that most small business owners want to do everything they can for their employees. This is true for several reasons, but the biggest incentive for owners, of course, is to retain and attract good employees.
Despite the common myth, often perpetuated by the media, about the cold and mighty employer, most small business founders are former employees. As such, they have an inherent understanding and appreciation of what workers need and desire from their employer.
And surveys have proven time and time again that, more than any other category of perks and benefits, employees want affordable health coverage.
Small Business Health Insurance 101
There are a few basics that business owners new to this role, or who are just now considering health plan offerings, may need to know.
First of all, under Affordable Care Act (ACA), small businesses with fewer than 50 employees are not legally required to offer health insurance to employees. Conversely, larger companies with 50 or more employees be Legally required to provide affordable health insurance.
The ACA defines “affordable” health insurance as coverage in which an employee’s annual cost does not exceed 9.78 percent of their annual income. By not offering health insurance, an employer with 50 or more workers is subject to a fine of $2,320 per full-time employee, excluding the first 30 employees.
For small business owners with fewer than 50 employees (including full-time equivalents, or FTEs), health insurance coverage will generally be purchased in the small group market.
Key considerations when purchasing group health coverage
As a small business owner, you will need to consider several factors related to small business health insurance, the four main points being: coverage, number of employees, employee premiums, and shopping for coverage.
coverage. If your company Eligible For a small business health insurance plan, coverage is generally guaranteed to be issued by the insurance company. In other words, you and your dependents or employees cannot be denied coverage based on pre-existing medical conditions. This means that all eligible employees and their dependents can enroll in the new plan regardless of any medical condition.
Number of Employees. To qualify for small business health insurance coverage, you must have at least one employee on your payroll. In California, owners are generally counted as employees, which means that a sole proprietorship with one employee falls into this category, as do partnerships without any employees.
employee premiums. As an employer, you are required to pay at least 50 percent of your employees’ monthly health insurance premiums. The minimum percentage may vary by state or your insurance company.
How to buy coverage. As a small business owner, you can shop for health insurance coverage at any time, without waiting for your current or next plan to expire Open enrollment period. There are several ways for owners to purchase insurance, including buying from providers directly or using an intermediary.
How small business owners can benefit by offering health benefits
The benefits derived from offering health insurance coverage plans to employees are tangible and intangible.
Among the intangible or immeasurable benefits that employers can obtain is a stronger level of Job Satisfaction As well as increasing the loyalty of the company among the employees. It is directly related to this stronger position to attract and hire desirable candidates for job vacancies.
While you can’t attach a number or a unit of measure to these things, many of them are Surveys and Studies She continued to emphasize the value to workers of employer-sponsored health coverage.
The tangible benefits of offering health insurance to your workers include potentially affordable coverage for you as the owner and your dependents.
In addition to potentially lower health coverage costs for owners, businesses with fewer than 25 full-time employees (FTEs) may qualify for tax credits if they purchase a plan through Small Business Health Options Program (SHOP) Exchange, the insurance portal created by the ACA.
You do not have to present it to dependents or employees who work less than 30 hours per week to qualify for the tax credit.
To qualify, however, you must meet the following requirements in addition to having fewer than 25 full-time employees. you have to:
- Provide health insurance for all full-time employees
- In front of at least 50 percent of the cost of the insurance premium
- Pay salaries of less than $50,000 to each full-time employee, on average, each year
If you qualify, you can receive a tax credit of up to 50 percent of your employee premium contributions, which may significantly reduce the costs of providing health benefits to your employees.
Ensuring that your employees have good, affordable health insurance coverage can reduce costs that arise from reduced productivity and absenteeism caused by employee illness.
as such article From Harvard Business Review,
“Employer-sponsored health plans and wellness programs lead to demonstrable business results, lower costs and higher returns:
- A study in one company reported that a 13.5% increase in employee well-being resulted in an average decrease of 5.2% in medical costs per employee per year.
- For every dollar spent on employee wellness, medical costs are reduced by $3.27, and absenteeism costs are reduced by $2.73—a sixfold return on investment.”
JC LEWIS INSURANCE CAN HELP WITH YOUR COMPANY’S HEALTH INSURANCE
At JC Lewis Insurances Services, we understand your desire to provide your employees with the best benefits package you can offer. But we also understand that there are many factors and considerations involved when choosing a health coverage plan.
As a California family owned and operated health insurance agent, licensed to do business in California, we specialize in small business, Medicare and Medicaid insurance plans.
At JC Lewis Insurance we want to be your insurance partner.
We can customize our recommendations to your specific needs since we are licensed by most major California carriers. And with JC Lewis Insurance Services, you can save time and money, and we can quickly identify your specific needs and recommend the best products and prices to meet those needs.
When you choose medical insurance for you and your employees, you will likely have many questions and concerns. This is great because we welcome your questions about health coverage insurance, and you can be confident that JC Lewis Insurance Services will help you find the right solution.
