Do you own a company that has more than 50 full time or full time equivalent employees during 6 months or more of the calendar year?
Then you are likely considered a “larger employer” according to the IRS and you need to provide health insurance according to the Affordable Care Act (ACA).
Depending on how many full time or full time equivalent employees you have, your best option for providing health care for your staff is group health insurance.
What is Group Health Insurance?
Group health insurance is any kind of health insurance that covers a group of people, usually the employees of a particular company or business, or members of an organization such as a labor union.
It is provided by your employer; if you are the employer, than you many need to provide health insurance and other benefits to your full-time and perhaps part-time employees, and that is usually done through a group health insurance plan.
When you purchase a group health insurance plan for your company, you’ll be assigned a group health insurance number that will be used for everyone covered under the plan, and it will appear on everyone’s insurance ID cards.
That group insurance plan number is the same for everyone in the company; each individual covered also has an individual ID number as well.
Both numbers will appear for everyone in the group health plan’s insurance cards.
Group health insurance policies allow the covered individuals (the employees in this case) to add their dependents to the policy, including spouses and children.
Nearly ninety percent of large to mid-size companies offer some kind of employee healthcare package, and most of those group health insurance packages include coverage for spouses and dependent offspring.
Why Do You Need to Provide Group Health Insurance?
If you have any number of full time or full time equivalent employees, then you might want to consider providing group health insurance.
Furthermore, if you have more than fifty full time or full time equivalent employees, you are required by the ACA to provide health insurance for them since you are considered a “large company”.
While almost ninety percent of large to mid-size companies offer health insurance, only forty-four percent of small businesses (under ten employees) do so.
This means that smaller companies can stand out from the pack and attract better talent if they do offer a group health plan.
That said smaller companies (50 full time or full time equivalent employees or less) are not obligated to supply health insurance under this mandate, but if you are a small business owner, it may be a good idea to consider providing health care for your employees as a benefit of the job regardless.
In addition, companies that offer benefits like health insurance and related benefits tend to attract better talent, so even if your business is not legally required to offer a health care plan, it may be your best interest to do so.
A good health care plan reduces employee turnover and improves your retention rate, which is nearly always in your best interest as an employer.
How Do You Choose the Right Type of Group Health Insurance?
Your insurance agent can help you choose the right type of group health insurance depending on your company’s size and the associated legal requirements.
Working with an agent is the best way to determine the best possible policy for your needs; with the huge variety of plans out there and your responsibilities as a business owner, it is best to consult an expert.
ASCO Insurance agents who are well-versed in group health insurance plans can also help you assess what kind of plan would make your employees the happiest, since they know what works in your market.
And of course, having an insurance agent help choose your plan means that you have a helpful consultant not only while selecting the group plan, but after the plan is in place.
Choosing the right group health insurance coverage is complicated, but your insurance agent is here to help.
Group Health Insurance for Independent Contractors
If you are an independent contractor, you may still be eligible for a group health insurance plan.
Working with an insurance agent is generally the best option for the self-employed or independent contractors when it comes to purchasing health insurance, since they will be able to help you compare the wide range of health insurance plans and providers and help you find the best possible fit for your health care needs.
What Other Types of Insurance Are Related to Group Health Insurance?
Any other type of health insurance policy, including health insurance for the self-employed or independent contractors, small group health insurance, and individual health insurance are related to group health insurance.
Contact the ASCO Insurance team to learn about the best group health plans in Illinois.