Watch This Quick Video About Holiday Groups!
Are you a business owner? Do you know a business owner? Are you or someone you know losing their health insurance plan in 2020? In Texas alone, many individuals will be faced with a few individual options and no PPO Plans. And unless you qualify for a tax credit based on income, traditional insurance can be pricey. And while all the buzz is around the Affordable Care Act Open Enrollment Period for individuals, we aren’t hearing too much about the Special Open Enrollment Period for Small Employers. Which is a shame, because it is very short-lived and very cool. So, listen closely and act quickly.
November 1 – December 15 is a Special Enrollment Period for small employers (1– 50). They get a Participation Holiday and don’t have to meet participation or contribution requirements! That’s right. This little-known part of the Affordable Care Act requires health insurance companies to offer an annual Special Enrollment Period (From 11/01 to 12/15 for January 1st effective dates).
This means employers do NOT have to meet the normal 75% participation requirement or 50% premium contribution rule. So, if you have 20 employees and only 1 want it, that’s cool. It doesn’t matter. And the contribution amount, well, you set it up how you want to, but it can be way lower than 50%, and you can even charge 100% to the employees.
Why would an employer want to offer a group health plan?
- The individual options are limited.
- You can have a PPO, which means you probably CAN keep your doctor, and still see lower prices.
- You can offer more than one plan to accommodate multiple needs.
- Attraction and Retention! You want talent and talent wants benefits.
- The employer contribution is 100% tax-deductible as a business expense and tax-free to your employees.
- Employees can pay their portion of premium with pre-tax dollars (Section 125 plan in place of course) which saves both employer and employee in taxes. It’s a win-win!
FYI – You do need to have at least one 1099 or W2 that is not your spouse.
So, if you’ve wanted to be that Employer of Choice and get a group plan in place, but had the dreaded participation problem, now is your time. Like, right now. Don’t hesitate, call your favorite Benefits Advisor today! And go to our website to complete this questionnaire ASAP: Small Group Questionnaire
Of course, I am available for questions.