Frequently Asked Questions
So you’re thinking about buying health coverage for your business, but you’re not sure if it’s the right decision. It tends to be confusing, complicated and expensive. Making the right decision can be difficult. If you own a business, there are some good reasons to consider offering group health insurance to your employees. Before you consider a plan for your business, it might be helpful to familiarize yourself with these frequently asked questions.
What is group health insurance?
Group insurance plans are designed for businesses, their employees and dependents. If you have at least one but not more than fifty employees, you are considered a small group. Employers with more than fifty (full-time equivalent) employees are considered large groups. Products and requirements depend on the size of your business.
How many employees do I need to apply for group insurance?
At least one (non-family member) employee.
Are small businesses required to provide coverage to their employees?
Businesses with under 50 (full-time equivalent) employees are not required to provide insurance to their employees, but those with 50 and over must.
If I offer insurance, am I required to pay for my employees’ premiums?
You must pay a percentage of the employees’ premiums for health insurance, which varies from 25% to 50% depending on the insurance carrier. You are not required to pay for dependents.
Do all my employees have to enroll?
A minimum number of your employees, usually 50%, must enroll unless they have acceptable coverage from another source.
When can I apply for small business health insurance?
You can apply at any time of the year. However, if you apply during the Small Business Special Enrollment Period (November 15 – December 15) the participation and contribution minimums are waived.
Why should I purchase group insurance for my employees?
Group health insurance offers people better access to care and protects them financially from heavy debts arising from major illnesses or injuries. Having group coverage has shown to reduce absenteeism, improve morale and help with retention. Also, consult with your CPA for the tax advantages.