4.5 million people quit their jobs in November as the United States faces a record-breaking labor shortage.
As a small business, you have to do everything you can to attract and retain employees. One of the most important factors for employees is health insurance.
Healthcare costs are on the rise and employees expect the best from employers. If you want to hire and keep top talent, you have to offer a good insurance plan.
So how can a small business offer health coverage to its employees? Keep reading for our complete guide to group insurance for small businesses.
What is Small Group Health Insurance?
Small group health insurance is a type of medical insurance that is for small businesses with 50 or fewer full-time employees. Small group insurance provides health insurance coverage for employees and their families.
In most states, small group health insurance is reserved for businesses with 50 or fewer employees, but in some states, small group plans can be sold to businesses with up to 100 employees. In the majority of states, businesses with more than 50 employees use the large group market to obtain health insurance.
How Does Group Insurance for Small Businesses Work?
The Affordable Care Act (ACA) requires all small group and individual insurance plans to comply with a special set of rules. These rules ensure that plans are affordable and that they offer coverage for 10 essential benefits including:
- Outpatient/ambulatory patient services
- Laboratory services
- Prescription drug coverage
- Hospitalization
- Preventative/wellness services
- Rehabilitative/habilitative services
- Emergency services
- Pregnancy/maternity/newborn care
- Mental health/substance use disorder services
- Pediatric services including pediatric oral and vision care
Plans must also provide coverage for birth control and breastfeeding.
It’s important to note that dental and vision care for adults are not considered essential benefits. However, these are only the minimum requirements and what specific services are covered can vary by state. Plans can choose to offer additional coverage for vision, dental, and medical management programs.
Plans cannot have a dollar limit on how much they will pay.
How Do Small Businesses Get Group Insurance?
Small businesses can purchase group plans at any time during the year. Plans can be purchased from insurance companies, brokers, or through an exchange.
In most states, small businesses may be subject to participation requirements. These can include the percentage of employees who will enroll in a plan and the percentage of the premiums being paid by the business rather than the employee.
However, there is a one-month period each year where group insurance for small businesses is guaranteed issue. From November 15th to December 15th, small businesses are not subject to the usual contribution or participation requirements.
Does Your Business Need Health Insurance?
One of the best things your small business can do to minimize the impact of the labor shortage is to make sure you are offering your employees the best benefits.
We can help you get group insurance for small businesses that will keep your employees happy and healthy. Click here to learn more about how we can help you meet your small business goals.