How To Get Health Insurance for Your Employees as a Small Business in Santa Rosa

How Small Businesses in Santa Rosa Can Offer Health Insurance

Providing health insurance as a small business in Santa Rosa is more accessible and manageable than many employers expect. By understanding group health insurance basics, working with a knowledgeable local broker, and using benefits management software, businesses can offer valuable coverage while controlling costs and staying compliant.

Key Takeaways:

• Group health insurance offers a more affordable option than individual plans and is a great choice for small businesses.
• Work with a local broker to help you navigate options and ensure compliance with California’s regulations.
• Use benefits management software to streamline your employee health insurance administration and control costs effectively.
  

Understanding group health insurance options, working with a local broker, and using benefits management software can help you make smart, cost-effective decisions for your employees' health coverage.



As a small business owner in Santa Rosa, offering health insurance to your employees is a big step in supporting their health and attracting great talent. If you're new to this or reconsidering your options, this guide to group health insurance will help you understand the basics and how to choose the right health plan for your employees.

What Is Group Health Insurance?

Group health insurance is when a business provides health coverage to its employees under one plan. This option is often cheaper than individual health insurance. You’ll choose the plan, but the risk is shared between you and your employees.

There are two main types of group health insurance:

1. Fully insured plans: The insurance company takes on the risk of paying healthcare costs.
2. Self-funded plans: The business takes on the risk and directly pays for claims.

Most small businesses choose fully insured plans because they are easier to manage. Understanding these options is key to navigating the cost of health benefits.

Contribution and Eligibility Rules

You’ll need to pay a part of your employees' health premiums. Generally, you must pay at least 50% of their premiums, but this can vary depending on the plan. Offering coverage to employees' spouses and children is optional.

Employees typically need to be full-time to be eligible for coverage. Some plans also require a waiting period for new employees before they can join. These eligibility rules are important factors to consider when you’re planning your small business health insurance offerings.

How Your Business Size Affects Health Insurance Options

The size of your business plays a role in the health insurance options available to you. In California, if you have fewer than 50 employees, you’re not required by law to offer health insurance, but you can still buy a plan through the Small Business Health Options Program (SHOP).

If you have 50 or more employees, you must provide health insurance under the Affordable Care Act (ACA). Understanding the available plans is essential when deciding how to choose the right health plan for your team.

How Can You Control Health Insurance Costs?

Health insurance premiums can be expensive, but there are ways to manage costs:

• Offer tiered plans: These plans let employees choose from different coverage levels, which can help save money.
• Encourage wellness programs: Helping employees stay healthy can reduce healthcare costs in the long run.
• Shop around: Compare plans from different providers to get the best deal.

You may also qualify for tax credits, like the Small Business Health Care Tax Credit, if your business meets certain criteria.

Minimum Participation and Other Requirements for Group Health Plans

Most health insurance plans require a certain number of employees to enroll for the plan to work. Insurance providers often need at least 70-75% of eligible employees to sign up. This helps ensure the plan is financially stable.

It’s important to communicate with your employees and encourage them to enroll so you meet the minimum participation requirements. A clear guide to group health insurance options will help make this process smoother for your business.

Why Should You Work With a Local Broker To Choose a Health Plan?

Working with a local broker who understands California’s insurance rules can make the process easier. A broker can help you:

• Find the best health insurance plan for your business.
• Understand the rules and regulations.
• Guide you through the enrollment process.
• Help with managing the plan each year.

Working with a local Santa Rosa broker ensures that you’re making informed decisions about your small business health insurance.

Benefits Management Software

As your business grows, managing employee health insurance can get more complex. Working with brokers who use benefits management software can help make this easier. They track enrollment, ensure everyone is covered, and help you stay compliant with the law.

A local broker can also help you better understand your health benefits costs, allowing you to make smarter decisions. Some of their software solutions provide data analytics, helping you track health claims and trends over time, which can be valuable when planning future benefit strategies.

What Additional Health Benefits Should You Consider?

While health insurance is one of the most important benefits you can offer, consider other options that can enhance your employees' overall well-being.

Dental and Vision Plans

Many businesses offer dental and vision insurance as optional add-ons to their health plan.

Mental Health Support

Mental health services are increasingly important to employees. Look for plans that provide access to counseling or therapy.

Employee Assistance Programs (EAPs)

These programs offer additional support for employees dealing with personal issues that may affect their work performance.

Next Steps for Offering Health Insurance to Your Employees

Providing health insurance can be a great benefit for your employees and can help your business stand out. By understanding your options and working with a local broker, you can find the right plan for your business.

If you're ready to explore group health insurance or want to learn more about benefits management software with expert brokers at Sackett Insurance, contact us today to discuss your options.