As compared to businesses with over 50 employees, the Affordable Care Act does not require small businesses to provide their employees with health insurance. However, to keep your employees happy, healthy and dedicated to their jobs, you might consider adding a health insurance benefits package. Here are questions to help you determine whether small business health insurance is right for you:
Currently, the US laws require everyone to have health insurance coverage (with only a few exceptions). Asking your employees if they need employer-provided health coverage is only right as some may have other options elsewhere. Still, they might be disappointed with their current plan or uninsured. It is best to just ask them if they would be interested in work health benefits.
The costs of the employer-provided health benefits are usually split between the business and the employees. Business owners can pay from zero to 100 percent of the employee’s benefits. However, the employer is generally expected to contribute at 50 percent but if you purchase the insurance through Affordable Care Act small business exchange, the costs are significantly lower.
When employees purchase health insurance through healthcare.gov, they can apply and be granted a subsidy on their insurance costs. The bottom line is, if an employee has their coverage from the employer then they are automatically disqualified from subsidy and even if they turn the coverage down, the fact that it’s available denies them from receiving a subsidy. If most of your employees qualify for a subsidy, then it is better to reconsider the insurance benefits.
Before deciding on the best insurance plan consider a number of factors such as: do your employees receive treatment regularly, and they expecting childbirth or any major medical procedures? Remember, employees who suffer chronic diseases may prefer a plan that will cover most of their expenses, while those who are healthy would probably be alright with a lower premium. You need to take into consideration all these factors if you are purchasing a single group plan for your employees. Alternatively, you can offer them a group plan with a range of policies to choose from.
As you can see, there are several advantages to employees purchasing their own health insurance. They choose the plan that works best for them and if need be apply for a subsidy. If this is what your employees want then you should let them buy insurance on their own.
Do you need to offer small business health insurance to your employees? Mercado Insurance Services offers trusted partnership in small business health insurance. We work closely with our clients to ensure a strategic plan is developed in order to enhance your employees’ benefits, improve on compliance and reduce premiums. Our goal is empowering our clients and improving employee morale by providing valuable services. We have passion for your health.
Mercado Insurance Services is available to help you with all of your insurance needs. Whether you are looking for personal, small business, or family insurance, we have the right plan for you. Give us a call today and let us help you find the perfect insurance plan to meet all of your needs.