THE TOP 10

FREQUENTLY ASKED QUESTIONS about GROUP HEALTH INSURANCE for SMALL BUSINESS

What is small business group health insurance?”

Also known simply as group coverage, small business group health insurance is a single policy issued to a group of 50 or fewer people.

Do I need to offer health insurance for my small business?”

Under the Affordable Care Act (ACA) businesses who employ between 2 and 50 employees are exempt from the non-compliance penalty. This means that businesses of this size are not required to offer access to health insurance.

How many employees do you need to qualify for group health insurance?”

Most states require that you have at least one employee that isn’t yourself. In other words, a business must have at least two people.

What is the Small Business Tax Credit?”

This is a huge savings for small companies (fewer than 25 employees and average wage is less than $50,000) that can be worth up to 50% of your total contribution.

How do I buy small business group health insurance?”

Submit a census listing each employee, including age, sex, and smoking status. If an employee may want to cover dependents, then list them also.

1

How do I buy small business group health insurance?”

Work with your agent to review available plans and compare pricing options.

2

How do I buy small business group health insurance?”

Decide on what plans and options you will make available to your employees. You will also need to determine how much of the premium you will pay, and how much will be the employee’s responsibility.

3

How do I buy small business group health insurance?”

Finally, you’ll announce an enrollment period in which your employees can get signed up.

4

How much is health insurance for a small business?”

You can expect a group coverage plan to average between $400 and $500 per month per employee.

Can a small business write off the cost of employee health insurance?”

Yes. Small businesses can write off the payments made for group premiums.

Can I reimburse my employees for the cost of their own health insurance ?”

It is possible to reimburse your employees for the cost of individual insurance through the use of an HRA, or Health Reimbursement Arrangement.

What are high deductible health plans (HDHP)?”

High deductible health plans are a popular variety of health insurance that trade high deductibles for lower monthly premiums. HDHPs are also HSA-qualified.

When can I enroll my employees in group coverage?”

Unlike individual health insurance plans, group coverage can be purchased any time of year. In addition, employees can enroll from their very first paycheck, or you can establish a waiting period for new employees.