Besides offering access to affordable health services, group coverage also helps businesses in ways relating to employee retention and tax benefits. Below, we outline the main ways that purchasing a group policy can benefit you, your business and your employees.
Trying to purchase health insurance can be a time consuming and confusing process, and it only gets more complicated when you look into offering group coverage for your employees. Use our simple explainers to navigate your options and find a plan that works for you and your business.
Many employers are required by the Fair Labor Standards Act (FLSA) to notify employees of coverage options available through the insurance marketplaces. These requirements generally apply to all employers with at least one employee. You can find sample disclosure notices, whether you offer insurance cover or not, on the Department of Labor’s website.
Prior to the passage of the ACA, insurance providers could impose a limit on the total amount of benefits you could receive throughout your lifetime. For example, the lifetime cap could be set at $1 million, and if an insurer reached that amount of spending on your health coverage, they could stop paying for your coverage. ACA-compliant plans are prohibited from imposing lifetime caps, but non-ACA compliant plans may not provide this protection.
A special enrollment period (SEP) allows you to potentially enroll in coverage outside of the open enrollment window if you miss the general open enrollment period due to losing health coverage, moving, getting married, having a baby, adopting a child, etc. Visit Healthcare.gov to learn more about SEPs and check if you qualify.
Association health plans (AHPs) allow self-employed and small business owners to band together to purchase health insurance. Unlike ACA-compliant plans, they may charge different rates based on age, gender or location and they are not required to offer the same comprehensive benefits as ACA-compliant plans.