What you need to know about getting Group Health Insurance for your business
By MIchael Roth
If you are interested in setting up a group health plan and benefits for your company, there are a few things to know before you start the process. Although overall group benefits are not difficult to get established, It is recommended you work with a certified agent to help get them in place.
The Basics: You only need a minimum of four people to start a group health insurance plan. If you have more than four employees, you will need to have 75% participation from your full-time (over 30-hours/week) employees to be considered. Employees with other group coverage through their spouse will not be counted as eligible.
The Costs for the Employer: As an employer you will be responsible to pay a minimum of 50% of the employee’s portion of the health insurance premium. Typically, premiums range from $150-$450 per month depending on your group’s age and plan chosen. This allows you to understand the financial impact for adding the group plan to your company.
Company Documentation Required: You will need to provide documentation of your company’s legal status and proof the company has employees. Below is an example of some of the information the carriers will look for. Each insurance carrier has slightly different requirements.
- Payroll records, or copies of the W4’s if they are employed less than 30 days
- Proof of business: Articles of Incorporation, etc.
- Check that is paid from the Company Bank Account with the company name
How to get a quote from a broker?
Eligible businesses will need to provide a census for all employees looking to obtain coverage; Providing company name, zip code, type of business or SIC code and the number of eligible employees. You will need a list that includes the employee’s home zip code, age, sex, spouse and children looking to be included for coverage. This will allow the broker to generate quotes from approved group health carriers for the group manager to consider.
A quote will then be generated which will give an idea of the premiums and benefits offered for the group.
Next Steps: When a plan is chosen the broker will walk you through the process, which can take about three weeks from the effective date.
Michael Roth ,CEBS,FLMI, Has been in the Life and Health industry for over 35 years.His specialty is Group and Medicare Insurance. He has won over 10 national awards while working for a Fortune 500 Insurance company in Chicago prior to relocating to 30A ten years ago. He is President of MRBenefits,inc. and is an area Vice President of Florida Health Connector which is based in Panama City. For more information call 850-899-7003.
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