Group Health Insurance FAQ
Controlling group plan medical insurance costs has become one of the most difficult tasks in running a business. It is imperative that your medical coverage maximizes your premium dollars while protecting assets and/or future earnings against major illness or injury.
Paying the highest premium does not equate to the best coverage and nor does choosing the lowest premium equate to getting the most for your dollar. Unfortunately, choosing the wrong coverage becomes painfully obvious when you need it most. Looking at hundreds of plans and benefit options can be quite daunting and if you are among the majority of businesses without an in-house risk manager, we can help save you money and give you a choice of plans to meet your needs.
It's no secret that employees value health insurance benefits. Surveys have shown that workers value health insurance coverage second only to monetary compensation. By offering group health insurance benefits to your employees, you may find it easier to hire and retain the best workers for your company. Additionally, there are various tax incentives available to you and your employees when you participate in a group health insurance plan. For example, businesses can generally deduct 100% of the premiums they pay on qualifying group health plans and, by offering group health insurance as part of a total compensation package, you may be able to reduce payroll taxes. Plus, your employees can pay their portion of the monthly insurance premium with pre-tax dollars. Make sure that you take these incentives into consideration when determining the affordability of a health insurance plan for you and your employees.
If the employer chooses to cover them, then all similarly situated individuals must be offered coverage under the employer’s benefit plan. The employee must have worked at least 20 hours, but not more than 29 hours per normal work week for at least 50% of the calendar quarter and must have completed the probationary period selected by the employer.
To add part time eligibility to an existing group, a new employer application, DE-6, and application/declinations on all eligible part time employees are required. Existing groups may add this option on their anniversary date.
To be eligible as an employee, a person must be an active employee on a full time basis and with a regularly scheduled work week of at least 30 hours per week, and be compensated for that work by the employer (subject to withholding as appears on a W-2 form). Sole proprietors, partners and corporate officers must work at least 20 hours a week to be eligible.
The group must have and maintain business licensure and/or appropriate state filings allowing the company to conduct business in the state of California. The majority (51%) of all eligible employees must be employed in the state of California. Residents of Hawaii are not eligible. And the group must employ at least two but not more than 50 eligible employees per AB 1672.
Every day we talk with business owners who clicked on a website, entered their zip code and employee demographics and got a list of 10 to 40 plans from which they made the wrong choice because it was the lowest cost. A few minutes with our licensed staff will arm you with sufficient knowledge to make an informed decision and choose from the best two or three plans that meet your particular needs. The easiest way to find the best Group Health Insurance plans available for your company and employees is to submit a Group Health Plan Quote Proposal. Spending a few minutes filling out the group detail information and submitting the proposal request has NO OBLIGATIONS to you or your company.