Small Business Health Insurance
Small businesses offering health insurance to their workers have an easier time attracting and retaining top talent, boosting productivity and employee happiness. Group health insurance from Goldstein Healthcare can help your small business save money and provide for the health and well-being of its employees.
Small Business Health Insurance
Small businesses offering health insurance to their workers have an easier time attracting and retaining top talent, boosting productivity and employee happiness. Group health insurance from Goldstein Healthcare can help your small business save money and provide for the health and well-being of its employees.
Health Insurance is Good Business
Offering health insurance to your employees is a significant step for your small business. It’s essential to consider the cost to you and your employees and the health services covered while searching for a plan that works for your all parties.
Rising healthcare costs are a challenge for individuals and enterprises prioritizing their employees’ health. Many business owners feel that high healthcare costs are overwhelming and small businesses are more vulnerable to such expenses.
High prices and the nature of traditional group coverage benefits have led to many small enterprises dropping health benefits. However, dropping health coverage is counterproductive because workers may quit their jobs in search of employment with a good benefits package. Your business may also qualify for a health insurance tax credit.
Luckily, there are multiple insurance options for small businesses. Here’s more on how small business health insurance works.
Does Your Small Business Need to Offer Health Insurance?
Because of the prevalence of employer-provided health benefits, it may be reasonable to assume that businesses are mandated to provide health insurance to their staff. That’s not the case, though.
Companies with 50 or more full-time employees are required by the Affordable Care Act to offer their workers minimal essential coverage (MEC). However, this coverage doesn’t have to be in the form of traditional group health insurance.
One way to show appreciation for your staff is to set up a health reimbursement arrangement (HRA). Read more how to find good insurance for employees.
Goldstein Healthcare is Here For You
At Goldstein Healthcare, we offer a wide range of health insurance plans for individuals, families, business owners, self-employed people, and more. Our passionate team provides flexible, affordable insurance options to match your needs. Call us today at (561) 212-6219 to schedule an appointment and learn more about health insurance plans in Florida.
Types of Insurance for Small Businesses
Small Group Health Insurance
The conventional health insurance choice for most businesses is a group health insurance policy. This health plan offers coverage to employees and sometimes employee dependents. Enterprises with 2-50 full-time employees can buy small-group health insurance. Find out if you qualify for group health insurance.
Small businesses with small business health insurance usually pay a fixed premium for the policy. However, enterprises can also pass a portion of the premium cost to employees. Employees are often responsible for copays and deductibles associated with the health services sought.
These plans are easy to obtain, making them good choices for small businesses. Most businesses purchase coverage through the Small Business Health Options (SHOP) marketplaces or insurance brokers.
Individual Coverage HRA (ICHRA)
Individual coverage HRAs are another type of health insurance that small businesses can use. If some of your staff members need health insurance but aren’t included in your group plan, you can help them by setting up an ICHRA.
Unlike the qualified small employer HRA (QSEHRA), the ICHRA is not dependent on the number of employees of the business. Under an ICHRA, companies can give their workers a monthly tax-free allowance. The staff member then purchases their health insurance policy and is reimbursed by the company up to the allowance amount.
Employees can submit receipts for eligible expenses to be reimbursed through the ICHRA. This helps small businesses maintain financial stability while providing employees with a valuable perk.
Qualified Small Employer HRA (QSEHRA)
If you want to avoid offering traditional group health insurance, a QSEHRA is an excellent choice for small and large businesses. QSEHRA is an IRS-approved benefit for businesses with less than 50 full-time equivalent employees that do not offer an employer group health plan.
With a few key differences, a QSEHRA performs similarly to an ICHRA. Compared to an ICHRA, employees don’t need to have their own individual health insurance policy in order to join. However, those with a policy that provides minimum essential coverage will have their reimbursements exempt from income tax.
QSEHRAs also have annual allowance caps that employers cannot surpass, which is not the case with the ICHRA. Since QSEHRAs have strict allowance restrictions and may be tailored to the specific needs of smaller enterprises, they are frequently the best option, as they can help the business limit expenses.
QSEHRAs are especially helpful for companies with employees covered by their spouse’s or parent’s group policy, as well as for enterprises with employees who do not have health insurance.
Self-Funded Health Insurance
Self-insurance is an alternative to group health insurance for small businesses since it eliminates the need for costly premiums and policy limits.
Small businesses in a self-insurance arrangement take on the financial risk associated with covering employee healthcare costs. This means that the company will cover the costs of each employee’s out-of-pocket claim as it occurs rather than paying a set fee to an insurance provider.
Insurance plan documents detail the requirements for eligibility and the benefits provided. In most cases, the employer will establish a trust fund into which employees and the company will pay to cover the cost of such claims. Companies can mitigate risk by combining the fund with a stop-loss insurance policy.
Claims and other forms of documentation are handled by third-party administrators (TPAs).
Contact Us Today for More Information
Although it may seem tricky for small businesses to get affordable health insurance plans, small employers have various options.
Our team of courteous and knowledgeable staff is committed to helping you achieve your organizational goals.