We all know that things change. However, while we may think that “nothing is certain but death and taxes” as the saying goes, even taxes change from year to year.
This is also true when it comes to the details, benefits, and requirements of small group health insurance.
Things change every year, costs usually go up, some aspects or features are added, while others go away. Unfortunately for small business owners who are often overworked and overly busy, small group health coverage isn’t really a “get it and forget” product.
As we move into 2023 and we’re in the midst of open enrollment, the annual period in which people can enroll in a health insurance plan for the next calendar year, changes may need to be made.
Keep in mind that eligible small business owners can get small business safety policies at any time during the year, unlike individual health plans. In other words, there is no standard “open enrollment” period for small business health insurance.
However, once a year, usually during open enrollment, your plan’s premiums or benefits may renew. If and when this happens, it is always a good idea to compare prices.
Ranking of the best health insurance companies in 2023
While there are certainly some aspects of healthcare that are somewhat subjective, such as quality of care and customer service, most factors related to healthcare providers and plans are measurable.
Each year, different entities take it upon themselves to rank or rank health insurance providers to help consumers decide which is the “best” in terms of different categories. They are usually ranked according to best value, best overall, highest quality, etc.
Here is a brief overview of the best health insurance companies for 2023 based on the collective results of various sources.
- Best overall: Blue Cross Blue Shield
- Best value plans: Oscar
- Highest quality plans: Kaiser Permanente
- The best low cost plans: Kaiser Permanente
- Best customer service: Humana
- Best for transparency: United Healthcare
Another source listed what they decided to be the best small business health insurance providers across the board:
- United Healthcare
- Blue Cross Blue Shield
- National anthem
- Kaiser Permanente
Another resource, the National chamber of commerce They presented this ranking of what they considered to be the top five health insurance for small businesses in 2022:
- Best small business health insurance: Aetna
- Humana: High quality health insurance for local businesses
- Kaiser Permanente Small Business Plans
- UnitedHealthcare Small Business Plans
- BlueCross BlueShield Small Business Plans
Of course, the “best” of anything when it comes to health coverage depends largely on the needs and preferences of those who use the services offered.
For example, Investopedia reportsAnd the
“Ultimately, your options are limited by the availability of plans in your state and the medications and services you need. But if you’re looking for well-managed plans and a positive member experience, Blue Cross Blue Shield offers good value along with solid reviews.”
Small business health coverage options for 2023
It is entirely possible that, after reviewing the plans and providers available for small group health coverage, you may consider alternative options to protect your employees at little or no cost to your company.
The most common option for owners is to direct employees to their state’s individual health insurance exchange marketplace, like Covered California, for example. If you choose to do so, you can also reimburse some or all of the costs incurred by your employees.
according to HealthCoverageGuide.orgAnd the
“If an employee pays premiums for personally owned health insurance or incurs medical costs and is reimbursed by the employer, the reimbursement is generally excluded from the employee’s gross income and is not taxable under federal and state tax law. This includes premiums for tax dependents and opposite-sex spouses. However, There are some circumstances in which the repayment is taxable income, including the following:
- If the employer pays the employee an additional amount and does not specify in writing that the amount should be used to pay the health coverage premium, it will be taxable to the employee as income.
- If the business owner is self-employed, any reimbursement for their own or their dependents’ health care costs is taxable income for the self-employed business owner.
As a business owner considering this option, you’ll need to speak with a CPA or tax professional beforehand.
Another option is to offer your workers what is known as a qualified small business owner health compensation arrangement (bomb it). This is an arrangement that allows many small employers to contribute to the health care costs of their employees.
HealthCare.gov Explain this way ,
The QSEHRA allows small employers to offer non-taxable reimbursement of certain health care expenses, such as health and coinsurance premiums, to employees who maintain minimum basic coverage, including an Individual Market Plan. In many states, QSEHRAs allow small employers provide their employees with additional plan options without managing group health plan coverage.”
For a small business to qualify for QSEHRA, the business owner must generally:
- Have less than 50 full-time employees
- Offer the arrangement on the same terms to all full-time employees (only payment amounts may vary based on age and number of individuals covered)
- Do not offer a group health plan, such as SHOP coverage or a flexible spending account (FSA)
In terms of typical costs with QSEHRA, the employer can decide how much to contribute to the healthcare costs of its employees, up to an annual maximum set by the IRS.
For example, in 2022, the employee-only contribution limit is $5,450 ($454.17 per month), while the maximum for employees and families is $11,050 ($920.83 per month).
Your best source for small group health insurance for 2023
JC Lewis Insurance is a well-established, family-owned firm of expert brokers who have been operating here in Sonoma County for over four decades. We offer a small selection Health insurance plans of many of the leading health insurance companies licensed to offer insurance in the state of California.
In addition, we are fully licensed and approved by each of these insurance companies to offer coverage to small group employers. JC Lewis Insurance Services provides services for complementary and prescription drug plans for seniors.
If you are a small business owner thinking health insurance Even vision and dental insurance for your employees—or just you and your family—you will likely have many questions and concerns.
At JC Lewis, we understand the needs and challenges of small businesses, and we know that providing California health insurance options for your employees can be a daunting and complex task. Ideally, you’ll want to find a balance between keeping costs affordable, while offering your workers the best options available.
JC Lewis Insurance Services welcomes your insurance coverage questions, and you can be confident that we will help you find the right solution.