Group Coverage Is Better for Employees
An individual health plan offers coverage just for yourself or for your family. Small business group health insurance has certain advantages over an individual health plan
Group coveragesmall business health insurance arizona that businesses purchase and offer to eligible employees and their dependents. Although group plans usually need to have at least two members, some states allow “groups of one” as well, so check out your local rules to make the best choice.
The insurance company will gather some basic demographic information about the group members– like age, geography, and so on– before explaining your plan options. Usually, group health coverage is more affordable for employees and offers more extensive coverage. You can split the premiums with employees or cover the entire premium, depending on your budget.
Payers offering SHOP insurance may face emerging challenges in competitive markets as federal agencies continue to approve the sale of limited insurance policies.
The federal expansion of association health plans (AHPs) could offer businesses a cheaper alternative. AHPs allow individuals and industry groups to sponsor their own health plans with low premiums.
AHPs also operate in a separate market from the ACA and aren’t required to provide essential health benefits or protect high-risk patients from discriminatory enrollment practices. Payers will need to help potential customers balance the ability to offer low premiums with providing a meaningful coverage package.
SHOP plans are ACA-compliant, but could be challenging for small businesses to find since they are not available on the federal marketplace.
CMS removed the SHOP health plan directory from Healthcare.gov for plan year 2018 and beyond. The agency requires employers to purchase a plan through a broker or the payer directly. Employers also must fill out a SHOP eligibility determination form to enroll and re-enroll in health plans.
The lack of a centralized place to buy coverage could create confusion for small businesses looking for a new health plan.
When you have a small business, it’s good to be mindful of all your expenses and make sure you stay within budget. With that in mind, it’s totally reasonable to wonder if small business health insurance is really all that important if you’ve got just a handful of employees. The answer is overwhelmingly yes. Small business health insurance is one of those things that works for you and retains your competitive advantage.