If you working for a company or running your own small business, providing or finding affordable and comprehensive health insurance can be even more hard than usual. Truly, a recent survey found that more than half of small business owners in California don’t give health insurance for their employees. The price for providing health insurance for an employee in small business averages over $3000 a year.
This is despite a requirement below California health insurance laws stating that small group health insurance must be available to any small business that Otherwise qualifies for group health insurance.
By the rule, any small business (defined as 2 to 50 employees) in California must be offered the similar health insurance for small businesses that is offered to other small businesses.
Coverage cannot be denied as long as a health insurance company pays their premiums, has been in business for at least two months and offers coverage to all qualified employees, including any who work part time.
A health insurance company may also specify a minimum acceptable number of people to enroll in their plan or else they do have the right to withdraw the insurance.
The health insurance may be revoked if the necessary minimum number of employees doesn’t participate.
Below California rule, it’s also against the law for an insurance company to refuse coverage based on the health of the insured group – coverage may differ based on employees’ average age and location.
And those companies that do trouble to provide health insurance to employees are cutting back on benefits or employer contributions – approximately 25% of employers said they have had to either reduce benefits or make their employees responsible for more of the costs.
Apart from being a requirement, health insurance for employees of small businesses makes financial sense – as well as being an excellent method of keeping employees happy and decreasing the absence, there may be major tax benefits. Generally, expenses related to health insurance are completely tax-deductible when incurred by an employer.
