Jupiter – West Palm Beach Group Health Insurance Plans
Group health insurance is employer-sponsored health coverage for business owners, employees and often for dependents.
It can be a mixed blessing for small businesses as it provides a guarantee of coverage for all of the full-time employees of a business, but often at a price that is difficult for smaller firms to justify. The paperwork and documentation requirements are more complex than other types of health insurance yet this coverage remains important to millions of employees of small businesses across the country.
A majority of Americans have group health coverage through their own or a family member’s employer-sponsored group plan. Employers and employees can share costs and there are tax incentives available to businesses that provide group health insurance. Full time employees of any small business that reports wage taxes are eligible. Full time is usually defined as working 25 or more hours per week (in Florida). A copy of the employer’s most recently filed state quarterly unemployment tax return is usually required as proof of eligibility.
Typically, employers cover at least 50% of each employee’s monthly premium, and can also contribute to dependent premiums. The remainder is paid for by the employee. Another requirement is that the group must have at least 75% enrollment to be IRS Qualified.
Is Group Heath Insurance Right for My Business ?
If you want to provide health insurance benefits and you’re able to contribute toward employee premiums, group health insurance is the way to go. Offering group health insurance can help you hire and retain the best workers, and the amount you pay toward employee premiums is tax-deductible. Since no one can be turned down based on medical history, group coverage also protects workers or family members who might otherwise go uninsured.
How Do I Get Started with Group Heath Insurance ?
First, tell us about your company and employees. Then we’ll show you health insurance quotes from a number of leading companies in your area. You will be able to compare plan rates and benefits in order to find the best match for your needs. You will also be able to talk to us or meet with us for additional assistance.
What are the Benefits of Providing Group Health Insurance to My Employees?
It’s no secret that employees value health insurance benefits. Surveys have shown that workers value health insurance coverage second only to monetary compensation. By offering group health insurance benefits to your employees, you may find it easier to hire and retain the best workers for your company. As a business owner, you may not have health insurance coverage yourself. Perhaps you’ve considered shopping for an individual health insurance plan for yourself and your family, but did you know that by obtaining insurance through a company, you may get better rates than through the individual market?
Additionally, there are various tax incentives available to you and your employees when you participate in a group health insurance plan. For example, businesses can generally deduct 100% of the premiums they pay on qualifying group health plans and, by offering group health insurance as part of a total compensation package, you ought to be able to reduce payroll taxes. Plus, your employees can pay their portion of the monthly insurance premium with pre-tax dollars. Make sure that you take these incentives into consideration when determining the affordability of a health insurance plan for you and your employees.
How Will You Know if Your Company Qualifies for Group Health Insurance?
Your company will probably be eligible for a small business plan if it meets the following criteria:
- Your company consists of at least two full-time owners, officers, partners and/or employees, as verified by officially-filed state quarterly wage and tax statements or annual federal tax return documents.
- Your company is a legitimate business entity (i.e., your company was formed for a purpose other than to obtain insurance), as verified by one of the following documents:
- A business license or fictitious name filing (proprietorships and partnerships).
- Articles of incorporation (corporations).
- Articles of organization (limited liability company).
- Your company meets the minimum employer contribution percentage set by the insurance company.
Please note that eligibility criteria may vary among insurance companies and by state. If you have any questions about your company’s eligibility for a particular small business plan, please call us Mon – Fri, 6AM-5PM at (561) 935-3907
Does Working with Florida Health Insurance Broker Cost Anything?
All the services offered by our Insurance Agency are provided at no extra cost to you, the consumer. If you buy a health insurance plan through Florida Health Insurance Broker, you’ll pay the regular monthly premium to the health insurance company you chose, but you’ll pay nothing to us. Our fees are paid by the insurance companies in the form of commissions. There are no changes in premiums when you work with an Agent or Broker.
What Does it Take to Get Small Group Health Insurance?
In order to get a Small Group Health Insurance Policy, you typically need to have been in business for at least 3 months. This is not a hard and fast rule, though. Formally created businesses, such as corporations or limited liability companies (LLCs) may be able to get a small business health insurance policy right away.
How Many Employees You’ll Need in Order to Qualify?
This depends on which state the business is located. In some states, such as North Carolina, you need only one person, and in others you need two people. If you are covering yourself and a spouse, then that may count as two, especially if you list both as employees to be covered on the application.
What Kind of Paperwork is Needed?
Expect to fill out an application that lists employees, and some degree of medical information on the employees. Since the group policies are guaranteed issue, such that your business and employees can’t be turned down, the rate can vary according to the laws of the state. Once you’ve signed up for a policy, you’ll probably need to provide annual paperwork such as company information (a profit & loss statement, etc.), and actually renew each year for coverage.
Won’t Rates Go Up a Lot Year After Year?
Yes, rates go up every year. But they may go up a different amount depending on the insurer that you choose, the state that you live in, and how much health insurance you use. For example, when I was working at a startup company a few years ago, someone at the company had a series of expensive operations for obesity. The amount of health insurance used by that individual drove up the rates for the group as a whole, and when that person left the startup, the human resources person shopped around for a new carrier to get a better rate so that the company would be starting over with a new experience rating.
Why You Will Want Small Business Group Health Insurance?
With some of the most common questions answered already, you may be curious to know if you would be a good candidate for small business group health insurance. From my perspective, there are two top reasons to pursue a small group health insurance plan.
The first is as a benefit to attract and retain employees. If your competitors offer health insurance as a benefit to employees, and you wish to attract and retain similarly qualified people, then you may not just want but need to have a small group health insurance plan.
The second reason is if you or a key employee or dependent needs to get guaranteed issue health insurance because of a medical condition. In most states, individual health insurance is medically underwritten and you may be denied coverage due to an existing condition. A small group health insurance policy will ensure that everyone gets coverage, possibly at a lower cost than when buying individual health insurance for someone with a condition.
Shopping for Small Business Health Insurance
It’s more work to shop for a small business health insurance policy than an individual policy. In most cases you won’t be able to pick up quotes online. You’ll have a lot more companies and choices to make. You’ll have to work closely with a good health insurance agent licensed and in good standing in your state.
Group Health Insurance Summary
Hopefully you’ve got a better picture of when and why you might want to consider a small business health insurance policy. There’s more work to do with this type of policy, including the shopping and the annual renewal, than you’d have with either an individual policy or as an employee of another company.