As if the health care scene isn’t confusing enough, small business owners must sift through a number of options to find the employee health insurance program that makes sense for them. Business with fewer than 50 employees are not required to provide health insurance under the Affordable Care Act, but many do for the good of their employees and company.
Here are three health insurance options for small businesses.
1. Individual Health Insurance
An individual health insurance policy plan can include a defined contribution allowance but doesn’t have to. Employees can make selections from providers and policies through the Marketplace or a broker. Employees who qualify may receive discounts through the individual health insurance tax credits.
Many small businesses choose to contribute to employee premiums and medical expenses through a health reimbursement arrangement (HRA). Also called health reimbursement accounts, HRAs are owned and funded by employers to reimburse employees tax-free for certain medical expenses up to a defined amount annually.
2. SHOP Marketplace
Small group health and dental insurance can be purchased through the public state or federal exchanges. The Small Business Health Options Program (SHOP) Marketplace gives eligible small businesses tax credits. Because if is relatively affordable, flexible and convenient, this route can be attractive for small business employers providing employees with insurance. Requirements vary from state to state and no open enrollment period applies, so SHOP health insurance can be started at any time.
If you’re self-employed find out more about your choices on the Health Insurance Marketplace for Individuals & Families.
3. Private Small Group Plan
With this option, the employer gives employees a set contribution to apply to the employees’ choice of plans. These plans fulfill the requirements of the health care law, but aren’t offered through the Marketplace. They can be purchased through insurance providers, agents, brokers and online.
Want to find out more about group health insurance? Learn more and get quotes on the Einsurance Group Health Insurance page.