Are you a business owner? Do you want to offer health insurance to your employees? Are you required to offer health insurance to your employees?
The Affordable Care Act has changed the way businesses are required to offer benefits for employees. Luckily, our team of insurance experts can help you wade through the ACA terminology and figure out what your business’s health care coverage requirements are.
Having the wrong health insurance options for your employees can result in government penalties for your business. It’s important for you to understand what your responsibilities and options are when it comes to health care coverage for your employees.
Typically, businesses will want to choose between Group Health Insurance Plans and Defined Contribution Plans. However, as a business owner you can’t offer both types of plans.
Here are some of the differences between the two options.
Group Health Insurance plans provide actual health care coverage for employees. Plans are purchased by the business and offered to employees and their dependents.
These types of plans can also be called employer-sponsored health care plans. With group health insurance plans, employees are offered specific types of coverage, deductibles, copays and the like.
The company chooses plan providers, and details are spelled out for each offered plan. With group health insurance plans, employers typically cover a portion of the plan’s monthly or annual premium cost, while the employee contributes a portion of the premium as well.
Defined contribution plans work a bit differently. With defined contribution plans, the employer contributes a set dollar amount toward each employee’s health care coverage.
The company can also choose a health insurance professional and/or provide other information to help employees choose the correct coverage option for themselves.
Your company’s goal is to educate employees about the advantages of individual health insurance and help them purchase the health insurance plan that’s best for their needs.
The employee is then responsible for choosing and purchasing their own health insurance plan. Your payroll department will be responsible distributing each employee’s employer-based monthly contribution amount.
Without knowing all of the details of your business, it’s difficult to say which type of plan is best for your company. However, our health insurance experts can help.
We’ll walk you through the fine details of each type of plan, while at the same time helping you determine your company’s responsibility as defined in the ACA.
In addition, we’ll help you choose top-rated insurance providers or professionals once you’ve determined the right type of plan for your business.
There are dozens of local health insurance companies that can meet your company’s insurance needs.
Whether your business is located in Phoenix, Scottsdale, Flagstaff, Tucson, Kingman, Glendale or other Arizona cities, we can help. We work with the best-reviewed insurance companies in Arizona.
Don’t leave your company’s health insurance obligations to chance. Call AZ Health Insurance Brokers today at 602.617.4107. We’ll help you ensure you’re providing the best health insurance options for your business and for its employees.
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Companies with fewer than 51 full-time (or full-time equivalent) staff are not required to offer a health insurance plan, while companies with 51 or more full-time/full-time equivalent staff should offer an affordable (as defined by the ACA) health plan to avoid penalties and fines.
At a minimum, the company must contribute at least 50% of the employee-only cost for the cheapest plan offered. ALEs (companies with more than 51+ FTE staff) may have to contribute more to meet affordability requirements.
Yes! Various benefits can be offered on a totally voluntary basis, such as dental, vision, life insurance, accident, critical illness, hospital indemnity, and more. Offering voluntary benefits can be a great way to enhance your overall benefits package and attract and retain top talent. These benefits are employee-paid, so they come at no cost to the employer, but can provide valuable coverage and peace of mind for employees. Plus, because these benefits are typically less expensive when offered through a group plan, employees can often get better coverage at a lower cost than if they were to purchase them individually.
This depends on a variety of factors. A consultation with a broker is recommended, as they can recommend plan designs, strategies, etc., that fit within your budget and mirror company culture.
Employer and employee contributions to health insurance premiums are typically tax-deductible as a business expense. This means that the money spent on health insurance premiums can be deducted from the company's taxable income, potentially reducing its overall tax liability. Additionally, employees' contributions to their health insurance premiums are typically made on a pre-tax basis, which can lower their taxable income and provide some tax savings.
AZ Health Insurance Brokers has experienced insurance advisors here to assist you with all of your insurance needs and questions. We will gladly help you find the answers to your insurance questions and help you find the right insurance plan for your needs. Also, AZ Health Insurance Brokers will never give out or sell your information to other companies.
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