Safeguard Your Business with Group Health Insurance Benefits

If you’re considering a group health benefits insurance plan for your company, it’s important to have all the information before you choose a plan. Group health plans provide benefits coverage to an employer group, usually comprised of company employees or members of an organization.

How Many People Do You Need?

When you buy group health insurance, you have to have a group. In other words, a single individual can’t sign up for this kind of plan. For small businesses there can be as few as two people in the group during the special open enrollment period. Otherwise, you need 70% participation, not including owners or spouses, from your company’s employees in order to get group insurance.

Why Is Group Health Insurance More Affordable?

Once the company chooses a plan, group members are given the option to accept or decline coverage. In certain areas, plans may come in tiers, where insured parties have the option of taking basic coverage or advanced insurance with add-ons. The premiums are split between the organization and its members based on the plan. Health insurance coverage may also be extended to the immediate family and/or other dependents of group members for an extra cost.

Group health insurance is sometimes lower in cost than an individual plan as the risk to the insuring a company is lower, since the plan is shared across more people.

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What is Considered a “Small” Employer Group?

When we talk about small businesses in the context of group health benefits, a small employer is one that has from 2 to 50 employees. A sole proprietorship with only one employee (the owner) isn’t eligible, and if you have more than 50 employees you are considered a large group. The large group platform operates a lot differently than small group.

Looking for something else to read?

How Does the Shared Cost of a Group Health Benefits Plan Work?

The cost of a group health plan is shared by everyone in the group, by the employer and employees. In other words, these plans sometimes cost less because there are more people in them. Also:

  • With some groups, employees pay a portion of their own health insurance premiums
  • To meet group health requirements, the employer must pay at least 50% of the employee health insurance premiums

Retaining talent is more important than ever. Showing your employees that you care about their well-being and by truly offering to help them by providing the option of group health and benefits insurance, this gives your employees one more reason to continue their career as part of your team.

 

Questions? Want to learn more? Here’s 4 easy ways to reach us:

Phone: 877-994-6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one client that trusts Stromsoe Insurance Agency:

“Dedicated to helping small businesses during these hard times. Great customer service and extremely knowledgeable in their products. Would highly recommend.”
Doris Hess – Relentless Brewing & Spirits – Los Angeles, CA – Client Since 2020

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!

Small Businesses Can Benefit From New IRS Health Care Tax Credit

The recent health care legislation signed into law by President Barack Obama contains a Small Business Health Care Tax Credit that will help small businesses with the cost of providing their employees with health care. The tax credit’s benefits are available immediately for the 2010 tax year.

According to the Congressional Budget Office, small businesses are expected to save an estimated $40 billion by 2019, due to the Small Business Health Care Tax Credit. The tax credit is effective retroactive to January 1st, 2010 and covers up to 35% of a small business’s premiums, with the rate increasing to 50% on January 1st, 2014.

Although non-profit organizations are eligible for the credit, they will receive a lower percentage. Tax exempt organizations will be able to receive up to a 25% tax credit in 2010, which will be raised to 35% in 2014.

The tax credit has broad eligibility, covering 4 million small businesses. Any business that pays at least 50% of employee health care costs, employs the equivalent of 25 or fewer fulltime workers (allowing eligibility for companies with 50 part-time workers), and pays an average employee salary of $50,000 or less (not including owners and their family members) will be eligible for the Small Business Health Care Tax Credit.

The maximum credit of 35% is available for small businesses with 10 or fewer fulltime workers and an average salary of $25,000 or less. For businesses that pay employees between an average of $25,000 and $50,000, the tax credit gradually phases out. The gradual phase out also applies to businesses that employ an equivalent of 10 to 25 full time workers (20 to 50 part time workers).

Businesses are able to claim the credit for a total of six years. They will be eligible to claim the credit for four years, from 2010 to 2013, and then any two years after the 2013 date.

To keep businesses from abusing the system by picking a high-cost plan, the Small Business Health Care Tax Credit will only be eligible for the average health insurance cost of the state where the business is located. This information will be provided by the IRS at a later date.

For more information, refer to the IRS website.

We hope this helps you add a little more to your bottom line, we know none of it comes easily!

Any questions or thoughts, here are 4 Easy Ways to Reach Us:

1. CALL 877-994-6787 or 951-600-5751
2. Fax 951-677-6265
3. Email – insure@siaonline.com
4. Visit Our Website – www.SIAonline.com

To Your Success!

Save money for yourselves and for your employees!

Save money for yourselves and for your employees!

Download the FREE California Rx Card at www.californiarxcard.com and you can save up to 75% on many prescriptions. There are no restrictions or participation requirements to join and it’s available to all California residents. 

We hope this helps!

Any questions, please contact any one of our protection coaches at:

Phone 877.994.6787
Fax 951-677.6265
Email – insure@siaonline.com 
Web – www.siaonline.com