Small Business Group Health Insurance
Get FREE Small Group Health Insurance Quotes
Review Summary: Employees value companies that offer small business group health insurance coverage. Attract and keep top talent by offering a group health plan to your employees. Get FREE small group health insurance quotes by using eHealthInsurance, the leading online source for medical plans of all types.
By entering your company information one time, you can easily compare group insurance options and plan premiums from top providers, right from your computer, without having to talk to anybody on the phone.
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Small business group health insurance plans are ideal for any company that wants to provide medical coverage to their employees. Because most employees look to medical insurance as one of the deciding factors as to what companies they want to work for, a group health insurance for small business plan will help your company attract and maintain the best workers. Many companies consider the ability to offer a small group health insurance policy key to employee satisfaction.
Finding the right group health plan for you and your employees is made easy with eHealthInsurance. As the leading online provider of medical coverage, eHealthInsurance is licensed in all 50 states to sell the group medical insurance policy your company needs to keep your employees happy.
Easily obtain a FREE group health insurance quote from multiple providers without being obligated to purchase coverage. This allows you to easily compare your options, and make a decision when you are ready, without feeling pressure to act now.
Group Health Insurance for Small Business Plan Options
Two main types of small business group insurance policies exist - managed care plans and indemnity plans. Indemnity plans are becoming less popular for a couple of reasons. While they offer a certain amount of freedom in choosing doctors, they do have higher associated costs and require more involvement by plan participants in the claims process.
The more popular type of group insurance for small business is managed care plans, which include:
- PPO - A very flexible option that allows you to visit any medical provider you want as long as they are in the network, a Preferred Provider Organization tends to be more expensive than other managed care options. Generally having a deductible, as well as the potential to have to pay a percentage of total costs, a PPO gives you flexibility for a price and does let you visit certain non-network providers.
- HMO - Requiring you to choose a primary care doctor, who will then refer you to any needed specialist, a Health Maintenance Organization is less flexible than a PPO. However, you probably won't have much of a deductible, if any, and more kinds of preventive care may be covered with an HMO. Just be aware that you may not be able to visit non-network doctors with this managed healthcare choice.
- POS - Combining elements of both a PPO and an HMO is the Point Of Service style of small business group insurance. Like an HMO, you are required to choose a primary doctor, but you are able to seek coverage from an out-of-network doctor, like a PPO. Just be aware that these visits may result in higher costs and the possibility of having to meet a deductible.
There are many choices you face when deciding on the right provider of affordable group health insurance for small business. Just know that eHealthInsurance is there to help you make an educated decision as to which small business health insurance plan is right for your company.
Small Business Group Health Insurance Quotes
By taking advantage of eHealthInsurance's advanced technology to compare group health insurance rates, you are able to not only quickly get quotes, but also research which group health plan is right for your situation. By offering group health insurance plans from over 180 leading providers, eHealthInsurance is your one-stop shopping destination to find the small group insurance that you are seeking.
Get your FREE, no-obligation small business group health insurance quotes from eHealthInsurance today!
Small Business Group Health Insurance Coverage Information
- By offering small group medical insurance to your employees (Wikipedia definition), you are able to attract, and maintain, top talent, as medical coverage is a highly sought after benefit that people look for when choosing what company to work for.
- Employers are typically required to pay at least 50% of the monthly premium for employees, and have the option to contribute to dependent's premiums.
- Employer tax advantages: In addition to what a company may qualify for with traditional payroll tax deductions, employers can qualify for federal tax credits if they 1) have less than the equivalent of 25 full-time eligible employees, 2) employees have an average annual income of less than $50,000, and 3) employer must pay at least 50% of premium. As always with tax matters, consult with your accountant for all the details about your tax deduction eligibility.
- A company is generally eligible for a group health plan if the following criteria are met: 1) There are at least 2 full-time employees (can be owners, officers, partners, or other type of employee (some states allow companies with only 1 employee to have a group plan). 2) Company is a legitimate business entity (formed for purposes other than just obtaining group health coverage, and is an LLC, corporation, or has filed a DBA). 3) Company meets minimum employer contribution percentage as outlined by the provider (normally at least 50% of the premium). 4) Company may be required to have a certain percentage of eligible employees participate in the group plan. Note: Company eligibility requirements vary by state and insurance carrier.
- Group health plans are broken into two categories based on how many employees a company has - small employer plans (50 or less employees) and large employer plans (over 50 employees).
- Small employer plans are "guaranteed issue" plans, which means that no employer or employee may be turned down for coverage based on medical/claims history, but an exclusionary period may be applied for individuals (no more than 12-months). Issuers must renew the policy each year unless there is non-payment of premium, fraud committed by the employer purchasing the coverage, or the employer violates some term of the group medical insurance contract.
- Large employer plans are not "guaranteed issue", so the provider could reject the entire company, based on claims history. However, if an employer's application is accepted, no single employee can be denied coverage based on health history - all eligible employees must be issued coverage if there is a large employer group plan in place for a company. Like small employer plans, large employer group insurance plans must be renewed each year by the provider, unless the employer fails to pay premiums, or commits fraud, or violates a term of their contract.
- Most common types of group health plans include:
- Indemnity (fee-for-service) plans offer traditional coverage that was popular before the advent of managed care plans (see below). With an indemnity plan, the insured has the choice of where to get medical care. In addition to the monthly premium the insured pays, they are also responsible to pay an annual deductible, which is due before the insurance company reimbursement starts. Payment for services is generally due at time of service, and the insured has to seek reimbursement from their insurance carrier. Reimbursement is usually split 80/20 (after the deductible is met), with the insurance company paying 80% of the allowed charge, and the insured picking up the remaining 20%. Fee-for-service plans can be a pain for the insured to deal with as there is more claims paperwork to deal with, and the overall costs are generally higher than with a managed care plan.
- Managed care plans include HMOs, PPOs, and POSs, and utilize a network of health care providers that have a contract with the insurance companies that helps reduce the overall cost to the insured. With a managed care plan, there is often a co-insurance amount due, which is a percentage of the claim that the insured must pay after the annual deductible has been met (such as 20% or 30%). An HMO (Health Maintenance Organization) offers reduced costs when compared to the traditional indemnity plan, but requires the insured to choose a primary care physician that is responsible for the overall care of the insured. The insured must get a referral before seeing a specialist, and generally has to pay a small ($5-$20) office visit charge (co-payment). Claims paperwork is taken care of for the insured, who only needs to provide proof of coverage (via a membership card) when seeking medical care. A PPO (Preferred Provider Organization) operates similarly to an HMO, but offers greater flexibility in that the insured does not need to pick a primary care physician and may see whomever they wish (without a referral), as long as the medical professional is in the network. Medical care can be had out of network, but the costs to the insured may be substantially higher. A POS (Point of Service) plan offers similarities to both an HMO and a PPO in that a primary care physician is chosen (like an HMO), but can seek care from a specialist without a referral (like with a PPO), but cost to the insured will be higher than if they did get a referral.
- HDHP (High Deductible Health Plan) that are HSA (Health Savings Account) eligible. In order to further reduce monthly premiums, a company can opt to offer a managed care group plan that has a fairly high deductible (at least $1,100 deductible for individual coverage or $2,200 for family coverage). Conveniently enough, this type of plan is called a High Deductible Health Plan, and if it meets certain requirements (including requiring no co-payment/co-insurance after the annual deductible is met), the plan is eligible to be used with a Health Savings Account (HSA). An HSA is a way for an insured with a HDHP to put away money that will be used for future medical expenses. This money grows, as it is essentially a savings account whose funds can be used only for health care purposes. Any money not used by the time a certain age is reached can be used similarly to a retirement account (HSA funds can be withdrawn to live off of once the magical age is reached). Annual contributions are capped at an amount determined by the IRS each year, but funds roll over year-to-year and continue to grow (assuming they haven't been used).
- Factors affecting group health insurance rates can include:
- Type of group health plan - An HMO is cheaper than a PPO, which is cheaper than a traditional Indemnity plan.
- Annual deductible amounts (higher deductibles typically mean lower premiums), co-payment/co-insurance levels (again, higher amounts generally mean lower premiums), and coverage types (more included coverage, such as maternity and prescription coverage, means higher premiums) all affect premium levels.
- To reduce costs to the company, employees can pick up more of the tab, though the company is usually required to pay a minimum percentage of premiums (typically at least 50%).
- Group claims history. The greater the frequency of claims, as well as the severity of claims, can mean higher monthly premiums, and future premium increases.