Does Your Company Qualify For Group Health Insurance?

February 19, 2018

Group health insurance policies are seen to be growing in popularity across the country, and this may be because there are some serious advantages to these policies rather than individual ones. Not only are they often cheaper than individual coverage in many states, but small company’s find them easier to manage. For example, there will be a monthly combined bill, uniform and regulated coverage for each employee along with many tax benefits. This ease of coverage is encouraging more and more small businesses to find out if they qualify for group health insurance: 

What does your small business need to qualify for group health insurance: 

While every insurance company may have differing standards and requirements, these are generally found to be the main prerequisites for coverage: 

  • It may sound obvious, but more than one employee must be registered on the plan 
  • While you can usually qualify with just two employees, they may not be direct family members 
  • Sometimes, employers are required to contribute towards the cost of the plan, but this happens less and less frequently now 
  • Sole proprietors, LLC, Partnerships, S-Corporations and more, are eligible for group health insurance 
  • You and your business, must meet the minimum participation percentage specified by the insurer 

Since this last point can be a little complicated, we’ll look at it in more detail: 

Enrolment in the health plan by at least 75% of full time employees within your company, is required by most insurers, but this is not always as straightforward as it may seem. For example: if you have some employees with coverage through their spouses, then they will already count towards your quota of 75%, but if some employeesonly work part time, then this can change things as only full-time workers count as eligible employees.While in general, it’s the employer who determines what hours make up full-time ones, the minimum hourly requirement is generally considered to be at least 25 hours a week, and the maximum is usually 40. Most insurance companies also permit you to offer your staff a choice from at least 2 plans, giving those who may not be able to afford one plan, the option of paying into a more affordable one. 

Why should your company choose group health insurance? 

Many more businesses nowadays are turning to group health insurance plans, particularly as the individual insurance market seems to be getting progressively worse. Such group plans can end up saving you money and help you to attract and retain, a higher standard of employees.

There are many reputable companies offering great coverage at reasonable prices, and they will usually work closely with you to ensure that you are able to give your valued employees the best group health insurance plans, at the very best prices. 

As the individual insurance market in PA seems to get worse every year, more and more small businesses are turning to group health insurance coverage. Doing so can save you money and help you retain high quality employees. 

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