Does your business qualify for a California Small Business Group Plan?
Under California law AB1672, small business employers are guaranteed group health insurance coverage should they choose to purchase it. A "small employer is defined as a business with 2 to 50 employees." If a husband and wife or at lease two people are self employed, they may be eligible to receive group health insurance coverage.
Under AB1672 Small Business Group Plans Coverage is Always Guaranteed.
Unlike underwriting appoval requirements for Individual & Family Plans, Small Business Group Plans can not deny to issue a plan to a group based upon the health history underwriting of the members. Once issued coverage to it's members can not be excluded.
Some rules for Small Business Group eligibility include:
- Carriers require that a business must be established at least six weeks.
- Must have a minimum of 2 active working participants.
- For most plans at least 75% if the empolyees participate.
- Employers must pay a portion of the employee premiums.
- Coverage may be obtained with a corporation, a partnership, quarterly wage report with at least two people listed on the forms.
What is the process and proof required to obtain a Small Business Group Plan?
Applications require a list of participating employees with some degree of medical information on each person plus their dependents. You will also need to list their names, ages, gender and residing zip codes. Since coverage is guaranteed this information is used for the pricing of your policy.
Applicants for Small Business Group coverage require different documents be submitted depending upon their type of business entity. Some documents required include:
- Corporation: Articles of Incorporation or Statement of Information.
- LLC: Articles of Organization.
- Sole Proprietor: Fictitious Name Statement and/or Business License.
How should you choose the right Small Business Group plan?
California Group Health Insurance choices are many and are offered in "tailored" packages from most of the major insurance companies. Your financial involvement can vary based upon your needs and interests.
The best way to begin the process is to know the type of benefits you and your employees need. Small business group insurance plans are flexible and offer choices that address individual financial requirements as well as the medical coverage needs of both employee and employer.
Some of the things to find out about your employees include:
- Are they covered under a spouse's health plan?
- Do they require frequent medical care or do they seldom visit a doctor?
- Are their preventative care, prescription coverage or coverage in the case of emergencies?
There are many advantages of providing your employees with a Small Business Group health insurance coverage.
- Attract & keeps Employees: Providing group health insurance coverage is a benefit in attracting and retaining employees.
- Guaranteed Coverage: Provides you, an employee and/or dependent with guaranteed health insurance for existing medical conditions.
- Tax Deductions For Employers: All expenses an employer incurs related to health coverage are 100% tax deductible.
- Tax Deductions For Employers & Employees: Ths HSA plans provide for tax sheltered funds for medical expenses to be taken from employees pat check. Employers may make contributions to these funds and receive payroll tax benefits. Read more...