Small group health coverage and facts employers should know


Health insurance coverage can be expensive, and the cost seems to go up from year to year, with some years more than others. It is bad for an individual or the head of the family to buy their own insurance. It is a financial challenge multiplied dozens of times for companies.

Despite optimistic promises from government officials and others, premiums have risen and have continued to do so since the passage of the Affordable Care Act, commonly referred to as Obamacare.

One study According to the Heritage Foundation, Obamacare more than doubled health insurance costs for workers and families, with the average national insurance premium increasing by 129 percent from 2013 to 2019.

The Kaiser Family Foundation (KFF) has determined that while premiums for this year were mostly on par with last year, this It can change dramatically Going to 2023.

“In 2022, average annual premiums for employer-sponsored health insurance were $7,911 for individual coverage and $22,463 for family coverage. These amounts are similar to average premiums in 2021. In contrast to the lack of premium growth in 2022, Worker wages increased by 6.7% and inflation increased by 8%.This difference may be due to the fact that many of the insurance premiums for 2022 were completed in the fall of 2021, before it became clear how much higher prices would be.With inflation continuing to grow at relatively high levels We are likely to see a higher increase in average insurance premiums for 2023 than we have seen in recent years.

They also note that the average family insurance premium has increased by 20 percent over the past five years and 43 percent over the past ten years.

Health care coverage data for small business owners

The Heritage Foundation report also noted that the average national monthly premium paid in the individual market in 2013 was $244, while by 2019 it was $558—more than doubling, up 129 percent from 2013 to 2019. In contrast, more From the same period, the average monthly premium paid in the large group employer market increased just 29 percent, from $363 in 2013 to $468 in 2019.

that Article In NerdWallet indicates that,

“Businesses with fewer than 50 full-time equivalent employees may choose to provide health insurance for their employees using small group health insurance plans. Small group insurance providers assess the risk for a group of employees rather than an individual. This allows them to offer lower premiums than would otherwise get Many employees would if they purchased health insurance independently.

And although companies with fewer than 50 employees are not legally required to offer health insurance, an estimated 53 percent of these high-volume companies did so in 2020. In addition, 48 percent of those with three to Only nine employees also provided health insurance coverage.

Also, the financial advantage for those really small businesses is the potential tax advantages.

Under the Affordable Care Act, employers with fewer than 25 employees and earn average wages of $52,000 or less—and pay at least half of their employees’ health insurance premiums—may be eligible for tax credits that can help offset the cost of a small business. Business health insurance.

These tax credits can add up to 50 percent of your costs to your employees’ premiums.

On the HealthCare.gov website, small business owners are advised that enrolling in the Small Business Health Options Program (SHOP) plan is typically the only way for a small business (or not-for-profit) to claim the Small Business Health Care Tax Credit.

The site goes on to note that to qualify for the tax credit, all of the following must apply:

  • Have less than 25 full-time employees (FTE)
  • The average employee salary is about $56,000 per year or less
  • You pay a minimum of 50% of your full-time employees’ premium costs
  • You offer SHOP coverage to all of your full-time employees. (You do not have to provide it to dependents or employees who work less than 30 hours per week to qualify for the tax credit.)

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JC LEWIS Insurance Services – The health coverage experts for your small group

One surefire way to reduce costs and save money is to work with an experienced broker.

Working with a company like JC Lewis means we work with you, not the insurance companies. We are able to compare coverage offered by different insurance companies so that we can find you the best rates and coverage in the market.

Simply put, we will provide you with the most unbiased, cost-effective, and most appropriate health coverage policy recommendations.

JC Lewis Insurance has been a family business based in Sonoma County since 1979. Our expert brokers offer insurance plans for small businesses, and our mission is to provide expert advice and assistance to small business owners for 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.

As a team of professional, experienced brokers, 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.

When you’re considering purchasing health insurance for you and your employees, and possibly vision and dental coverage, you likely have many questions and concerns.

At JC Lewis Insurance Services, we are happy to answer all of your questions about health insurance coverage. And you can be confident that we will help you find the right solution.

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