Are you a business owner? Do you know a business owner? Are you or someone you know losing their health insurance plan in 2018? In Texas alone, many individuals will be faced with one individual option. And unless you qualify for a tax credit based on income, prepare for sticker shock, AGAIN! I’ve done the math and it is real. 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.
November 1 – December 15 is a Special Enrollment Period for small employers (1– 50). They get a 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 wants 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 market prices are going way up, and many plans and options are going away.
- 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.
- 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 Adviser today! And go to our website to complete this questionnaire ASAP. http://tanyaboydassociates.com/small-group-insurance-questionnaire/ . Of course, I am available for questions.
Tanya Boyd, CEO
Tanya Boyd & Associates, LLC