HomeManaging Finances

Group health insurance for small business – Your Q&As answered

Group health insurance for small business –  Your Q&As answered

As a small business owner, you are probably asking yourself - do I need or do I have to provide group health insurance to my employees? So, first

The Truth Behind 14 Common Money Tips
This generation has the worst tippers
4 Money Conversations to Have With Your Partner When You Budget

This post may contain affiliate links, which means that I may earn a commission if you click on the link & sign-up or make a purchase. You will NOT be charged extra for using the link, but it goes a long way in supporting this blog. I only recommend products or services that I have personally used or believe will add value to my readers.

As a small business owner, you are probably asking yourself – do I need or do I have to provide group health insurance to my employees?

So, first off, let’s make sure we all understand the definition of a small business. The Affordable Care Act (also called the health care law, or ACA) employer mandate requires employers with over 50 full-time or full-time equivalent employees to offer insurance to those set employees.

If you do not, as the small business owner, you could face penalties. So, if your small business technically is under 50 total employees, you are not yet required to offer health insurance to your full-time employees. However, bear in mind that employee benefits – including health insurance, are one of the top deciding factors when it comes to someone choosing a new job or coming to work for you.

So it’s no longer so much just about employees collecting a check, they want to go to work and be provided more meaningfulness and value to their job. Employee benefits, including health insurance, have been a huge factor in that sometimes, I mean most of them would probably rather have better health benefits than maybe a small pay raise.

Employees will find that the dollar value stretches a lot more when they, instead of talking of a $500 a month raise, they take more contributions to their health care, dental, vision, long term disability, short term disability and life insurance for their wife as well as life insurance for their kids.

Again you don’t have to provide health insurance if you’re under 50 employees, but if you are over 50 full-time employees it is required.

Group health insurance for small business cost

How much does group health insurance for small business cost? This is not an easy question to answer because there are many factors that influence the cost of insurance to employers.

For example, it depends on how many employees do you have; what type of coverage do you want to offer; are there specific doctors or hospitals that need to be in network; and even the average age of the employees; their average health…

If you have employees and the monthly bill looks like it’s going to be $5,000 for everybody to be on Group health insurance for small business, chances are you the employer is going to pay 50% of that. That is about $2500 coming from the business.

You can also then look at possibly extending some of those contributions to the spouse and the dependents of the employees. So, again, it all depends but don’t get too caught up on this.

But remember that if you have a new business that’s just doing awesome and you’re thriving with two employees, soon you will have five employees and at some point gonna have to look at health insurance benefits.

Like I said it’s a very important and a very high significant factor as far as employees deciding between one job or the other. So, if you want to look at retaining great employees and also hiring rock stars, a comprehensive employee benefit package needs to be in your arsenal – it needs to be in your offer.

To get the best deals for your situation, it is always a good idea to consult your small business health insurance broker.

COMMENTS

WORDPRESS: 0
    error: Content is protected !!