A health insurance plan reduces potential costs on medical needs and helps ease worries in sudden health emergencies. So, it’s crucial to have health care coverage for you and your family. Despite that, while insurance plans may be purchased individually at a certain time every year, some people rely on their employers for these kinds of benefits.
Since it’s normal for big companies to offer medical coverage to their employees, you might wonder whether smaller businesses also provide health benefits–the answer is yes. In fact, there are several options for group health plans for small businesses. Here are some of them:
- Small Group Health Insurance
This is an ACA-compliant (Affordable Care Act) group insurance plan that applies to companies with up to 50 employees; for some states, this also applies to those with 100 workers. This plan may be purchased from insurance companies, brokers, or through the Small Business Health Options Program (SHOP) exchange.
There are dedicated benefits in a small group health insurance, which are separated into four tiers (bronze, silver, gold, platinum). Each tier has varying premiums, deductibles, limits, and copays, and employers are free to choose which one they want to offer to their employees. Plus, employers may also allow employees to buy coverage for their dependents.
- Self-Funded Health Insurance
With this type of group insurance, businesses use their own money to provide health benefits to their employees. With this, employers may save on costly premiums and administrative costs. Besides that, self-funded plans allow employers to freely customize an insurance plan to better meet their employees’ medical needs.
Still, this plan comes with risks. So, before choosing self-funded insurance, it’s best to consult an expert on group health plans for small businesses.
- Qualified Small Employer HRA (QSEHRA)
For businesses that don’t offer group insurance plans and have less than 50 employees, this type of health plan may be the ideal choice. In a qualified small employer HRA, employers contribute to their employees’ out-of-pocket medical costs. Here, employees pay their health care providers directly, and then their employers reimburse the cost tax-free.
Contact Midwest Employee Benefits Today
If you are considering offering health insurance coverage for your employees, it’s best to learn more about your options. Find the best insurance plan for small businesses by talking to an expert. Reach out to Midwest Employee Benefits in Sioux Falls, MD for more information about group health insurance plans.