As an employer, you may be asking yourself, “what is the best health insurance for small business owners?”
It’s understandable that you want to find reasonable options for your employees that won’t also break the bank.
For many small businesses, offering healthcare coverage is a challenge. This is typical because it can be costly. In fact, it can cost as much as $409 per month for small group health insurance, and about $440 for an individual plan. Initially, it may not sound like much compared to larger corporations. Yet, it’s difficult for smaller businesses to shell out this kind of cash when there are only a small amount of employees.
Of course, the pandemic continues to play a big role in the number of people who are going without health insurance coverage. The Census Bureau’s Poverty Statistics Branch found that nearly 28 million people in 2020 did not have health coverage. This amount is nearly 2 million more than those who didn’t have coverage in 2019. Many dentists are now turning to membership-based plans to get people in their chairs.
Nevertheless, for many reentering the workforce, the hunt is on for jobs with health coverage. And the market is fierce.
So, what is the best health insurance for small business owners? Here’s what you should know.
What To Know About Health Insurance For Small Business Owners
Whether you’re interested in the Marketplace, PPOs, or other options, we’ve got you covered.
The SHOP Marketplace
As a small business owner, you have a lot on your to-do list. One of those items is likely health insurance coverage for yourself and your employees. Many small business owners have questions about the Small Business Health Options Program (SHOP). To start, SHOP is for small businesses that have 50 or fewer full-time employees. It’s otherwise up to the employer to offer part-time employees coverage. You can use the Full-Time Equivalent or FTE Calculator to see if your business qualifies.
Then, 70% of those employees need to accept coverage. After you’ve met these requirements, you can shop plans for coverage based on the state your business is in. There are separate coverage options if you have a business that operates in more than one state.
Qualifying For The Small Business Health Care Tax Credit
There are a few exceptions for how small businesses have purchased a SHOP plan to receive credit based on the following criteria:
- You’re a for-profit or tax-exempt organization
- The average employee makes about $50,000 a year or less
- You have less than 25 full-time employees
- You pay half the cost of premiums for single coverage health insurance for your employees
As a small business, every cent counts. This is why a health care tax credit may be the best way to see some of that money go back into your pocket.
Private PPO Options For Employees
Looking for health coverage options yourself can be confusing. Not to mention, you have other areas of your business that need your attention. That’s why there are private PPO options available. They are particularly popular for small businesses and self-employed individuals.
Through a private PPO plan, you have the advantage of choosing your own healthcare provider. You can also have coverage tailored more to your needs. You can even get access to coverage like Medicare.
Private PPO healthcare can offer:
- Personalized attention
- More state-of-the-art facilities
- Shorter wait times
Self-Employed Options Through Healthcare.gov
You’ve been dreaming all your life of a self-employed position that allows you to do what you love while living comfortably. It’s a dream many Americans feel hesitant to start. One of the reasons includes having adequate healthcare for themselves and their families.
If you’re self-employed or considering a role where you will be self-employed, you may be worried about healthcare. But you don’t have to be. There are healthcare coverage options available for those who work freelance or other self-employed jobs.
Healthcare.gov also considers those who own their own business but have no employees. The Individual Marketplace offers plans for individuals and families. Similar to choosing other plans through an employer, you have the option of selecting a lower premium with higher cost-sharing or higher monthly payments and lower cost-sharing.
In addition to finding the plan for you and your family, you can access premium tax credits and other savings.
When Can One Enroll For Marketplace Coverage?
You can enroll during the open enrollment period, which is from November 1st to December 15th. You can also enroll if you have one of the following qualifying life events – household changes or changes in residence.
Household chances may include:
- Legal separation
- Birth of baby
- Adoption of a child
- Placed a child for foster care
- Death of someone on your plan
Changes in residence may include:
- You’ve moved and now have a new ZIP code or county change
- You’re moving from another country or U.S. territory to the U.S.
- As a student, you’re moving to or from the place you attend(ed) school
- As a seasonal worker, you’re moving to or from the place you both live and work
- Moving to or from a shelter or other temporary housing
There are other instances in which you can enter open enrollment, take a look here.
Diana Reeves Simplifies Health Insurance For Small Business Owners
You have enough to worry about running your own business and managing your employees. Diana Reeves helps small business owners just like you navigate health insurance options based on your needs. If you’re paying for health coverage, you want to be sure you’re getting the most for your money.
Diana Reeves Health Insurance can help answer your questions about health insurance plans, options, and more so you can make a smart buying decision. As a business owner herself, Diana understands the concerns many small business owners have and helps answer the question: what is the best health insurance for small business owners?
If you’re a small business owner and you’d like to know your options for healthcare coverage, contact Diana Reeves today.