How Necessary Is Group Health Insurance?

Is Group Health Insurance Necessary?

​When you own a business, it is important to take care of your employees. It is also crucial to keep your operating costs down to make sure your profit margin is as large as possible. When it comes to employee benefits, it is vital to understand which ones are required by law and which ones are optional so you can make an educated decision about what to include in the benefits package for your employees. 

​Employer Mandate for Small Businesses
 
The Affordable Care Act of 2016 requires all businesses with at least 50 full-time equivalent employees to offer health coverage that meets certain minimum standards. Any business without such a plan in place could end up paying significant fees. You might be subjected to monthly penalties if your business:

• Has no minimum standard coverage offered to 95 percent or more of full-time equivalent employees
• Provides no coverage for a minimum of 60 percent of the cost of necessary services
• Has coverage that costs the employees over 9.66 percent of their yearly household income in premiums

 
If you are wondering about what your fines would look like if your business doesn’t meet the legal requirements, a small business health care insurance broker can help you estimate your payments.
 
Federal Law Health Insurance Requirements
 
According to federal law, there are certain services small-employer plans must cover. Known as essential health benefits, these services include:

• Emergency services
• Newborn and maternity care
• Laboratory services
• Pediatric services
• Outpatient care without hospitalization
• Substance abuse programs and mental health services
• Necessary surgery and associated hospital time
• Prescription drugs
• Preventative care and chronic disease management
• Necessary physical therapy and medical devices

 
These benefits aren’t required to be covered by your health plan if it was purchased before March 23, 2010.
 
Costs of Health Insurance For Small Businesses
 
When it comes to health insurance, every small business owner is looking for the best coverage for the best price. Because every business is different, the cost will vary based on a variety of factors. The number of employees you have as well as their age can affect your payment. The biggest factor of group health insurance price is the level of coverage of the specific plan.
 
The Best Broker For Your Business
 
When you need a small business health insurance broker, you deserve to work with the best. For more information on which group health insurance plans and rates are right for your small business, contact Sackett & Associates Insurance Services today at (707) 823-3689. Find us on LinkedIn, like us on Facebook and subscribe to our blog for a better idea of who we are and what our clients have to say about us.