Health Insurance Options for Small Business Owners
A small business is defined as one that employs 50 or fewer workers. Small businesses have many options for providing group health insurance to their employees. However, in the past, many small businesses could not afford to provide health insurance to their employees.
Programs are emerging that help small business owners obtain group health care plans. Several options, such as Group Purchasing Agreements and High Risk Pools, are made available to help small business owners afford group health insurance. In addition, small businesses are eligible to receive tax credits for offering health coverage.
Group Health Insurance Tax Credits for Small Business
Small businesses with up to 25 employees that pay an average salary of fewer than $50,000, currently qualify for small business tax credits for up to 35%. In 2014, this percentage will rise to 50%. These tax credits offset the cost of group health insurance and provide small business owners with incentives to provide coverage for their employees.
Non-profits also receive a tax credit for offering group health insurance to employees. For non-profits, the tax credit amounts to 25%. In 2014, this tax credit will increase to 35%.
Group Purchasing Arrangements
Group Purchasing Arrangements, or GPAs, are implemented in several states. GPAs enable small businesses to join groups with other businesses to increase their purchasing power for employee group health insurance coverage. Small business members in these arrangements enjoy lower premiums than if the businesses were required to purchase insurance independent of the GPA. Certain states mandate the GPA model. These states include:
- Arkansas
- Kansas
- Montana
- New York
- New Mexico
- Ohio
- Texas
- Wisconsin
Even in states where GPAs are not mandated, group purchasing arrangements may be implemented. Check with the state’s regulatory agency for a list of GPAs in the state where the small business is located for more information.
Group Health Insurance Plans Through Insurance Providers
Many insurance companies offer options for the small business owner. Companies such as Aetna, Assurant Health, Humana and Blue Cros /Blue Shield offer plans that are specifically tailored to the needs of smaller businesses.
Free quotes for small business group health insurance may be obtained quickly and easily using an online health insurance comparison network or website. Such services allow the small business owner to enter the zip code of their business location, a few questions about their business and obtain quotes from several insurance providers at one time.
Many health insurance companies have begun to offer affordable small business group insurance. No need to perform extensive research to find companies that offer the coverage needed by a small business owner. The online health insurance comparison network enables a small business owner to obtain simultaneous quotes from several companies at one time based on the information they enter about their company.
Small Business Group Insurance – Affordable Options Available
Now more than ever, small business group health insurance is affordable and attainable. Various plans offered by major insurance providers, combined with tax credits and other incentives, allow small business owners to offer group health insurance to their employees. Small business owners may select from a variety of plans, such as HMOs, PPOs and Indemnity plans. Use an online comparison network to find a plan that fits your needs as a small business owner.