What is small business health insurance? Small business health insurance is coverage
bought by small businesses to cover employees and their dependents. There are three things that help distinguish
small business health insurance from other types of coverage. They’re made specially for small groups. You can shop for a new plan at any time of
year. Employers must make contributions toward employee
premiums. Let’s look at each of these in more detail. First, small business health insurance plans
are typically tailored for groups of fewer than fifty. Employers with fewer than fifty full-time
workers (or the equivalent in part-time workers) are not required to offer coverage to their
employees under the ACA. Many small business policies cover groups
of fewer than five or ten people. You may even be eligible for small business
health coverage if your only employees in the past year were technically 1099 contractors. Depending on the state, the insurance company,
and the specific circumstances of your company, those 1099 contractors might count as employees
for health insurance purposes. Second, you can purchase coverage at any time
of the year. With small business health insurance, you’re
not forced to enroll during a special open enrollment period like you may be when buying
coverage on your own. Third, with small business health insurance,
the business is generally required to pay at least fifty percent of your employees’
monthly health insurance premiums. The exact percentage can vary by state or
plan. That said, it’s important to remember that
the money you pay toward employee premiums is typically deductible from your business
taxes. Check with your accountant or tax advisor
if you can save money this way. To learn more about your small group health
insurance options today, visit eHealth.com.