Among the insurance that small businesses need may be group health insurance. A group health plan may be a convenient for these operations to provide employees with health coverage.
Nonetheless, group health insurance can sometimes be a tricky market to navigate. Certain small employers may face different insurance requirements than others. Before enrolling in a group health plan, make sure the coverage is right for your business.
What is Group Health Insurance?
Employers frequently buy one group health insurance plan. They then add and remove employees from the policy as needed. Enrolling an employees in a group plan means the business won’t have to buy separate insurance policies for each employee.
There are benefits to this type of plan. First of all, they will provide the same set of benefits for all employees. This can help the employer manage the costs they assume by providing this coverage.
Secondly, group health insurance can often save both employees and their employer money. Having one plan means that employees can often share the cost associated with the plan. Therefore, employees may wind up paying less for their coverage. Furthermore, group plans also help ensure that employees pay similar amounts for their premiums.
Qualifications for Group Plans
Insurance law sets different mandates on how employers provide health insurance for employees. The way businesses qualify for group plans may differ based on demographics.
- Some businesses qualify for special medical plans called small business health insurance. Businesses with less than 100 employees might qualify for this coverage.
- Businesses with over 50 full-time employees have rules to provide insurance for those workers. The business could face tax penalties if it fails to do so.
- If the business doesn’t have 50 full-time employees, it may not have to provide health insurance. However, the business may have to inform employees that they still have to buy their own insurance elsewhere.
- A small business with only a husband and wife often does not qualify for small business group health insurance. The couple may have to get their health insurance using another type of policy.
It is imperative that business owners analyze the type of group insurance they may need. If they don’t, they could wind up paying more for coverage or facing tax penalties.
Call Pfenninger, Claxton, & Estelle Insurance Group at 800-343-7293 today. One of our agents can help you get information on Muncie group health insurance.