Small Groups, Business and Non Profit
Small businesses and nonprofits that either have a small group plan (100 or less eligible employees) or would like to create small group plan can use Covered California for Small Business. There is no requirement for small businesses to offer health insurance to their employees. A small business with an existing small group plan can dissolve it and let the employees purchase individual and family insurance through either Covered California, where they might be eligible for a subsidy, or an independent health insurance agent. There are no penalties levied on small business for not offering health insurance.
Small groups can enroll with one health plan carrier or they can use a small group exchange such as Covered California for Small Business or CalChoice. The small group exchanges allow employees to select from different carriers. Some employees might choose Kaiser while other employees enroll with Blue Shield, Health Net, or a local plan like Sharp.
Small Group Health Plan Information
The literature and forms listed beneath each carrier represent some of the more popular files. Some health plans have no rate guides because they can change every quarter. If you are looking for a particular form, contact me, there is a good chance it exists but I have not posted it. If you would like a quote, you can also contact me. I can provide employer group quotes for a single carrier, or through a small business exchange such as Covered California or Cal Choice that offers multiple carriers for employees to select from.
They include a electric toothbrush, toothpaste and floss for every member.
Small group eligibility
- Small businesses with less than 100 full time equivalent employees are eligible to participate in Covered California for Small Business.
- Small businesses with 25 or fewer full time equivalent employees are eligible for tax credits on the employer contribution to the employee’s health insurance premium.
- Non profits and small business with 10 or fewer full time equivalent employees with annual wages of less than $25,000 are eligible for the maximum tax credits.
- Employers participating in SHOP will select a specific metal level of plans to offer to employees: Bronze, Silver, Gold or Platinum.
- Employees will be able to select from any of the insurance carriers offering plans with in that metal level. One employee may choose a HMO plan while another employee may select a PPO plan that has entirely different doctors and hospitals.
- Small businesses are eligible for tax credits when they contribute at least 50% to the employee only health insurance premium (there is no requirement to contribute to dependent coverage).
- Employees will be able to add dental and vision benefits at the time of enrollment.
- Small business employers can continue with their existing small group health insurance plans and make no changes.
Dental, vision, life, disability and other ancillary products can be purchased separately for the group and will not be offered through Covered California.
Small Business Tax Credits for Employer Contributions
This is a nice over view of the new IRS regulations covering the requirements small employers must meet in order to receive a tax credit for employer contributions to employee health insurance, from Gallina LLP, CPA, Sacramento. IRS Fine Tunes the Small Employer Tax Credit for Healthcare Costs