Health insurance is one of the most important benefits a company can provide its employees. In somevcases, the only reason an individual stays with a company is to get health insurance coverage. Even businesses with as few as two or as many as 50 employees can provide health insurance through the small business group plans available in most states.
Instructions
Meet the Requirements for a Small Business
1. Know the options that are available for qualifying as a small business in your state. The most common designation is for 2 to 50 employees, but other restrictions may apply. Contact your State Department of Insurance or a reputable insurance broker to learn about the specific requirements for qualifying as a small business in your state.
2. Provide the physical address of the location where the business is maintained. For businesses that operate in multiple states, the location of the business headquarters is the state in which the requirements for small business health insurance must be met.
3. Prepare to provide proof of your small business to meet eligibility requirements. You may be asked for payroll records, your employer identification number or any other documents that support your right to get a group health insurance policy for a small business.
4. Anticipate that some states allow insurance providers for small business group health insurance to require a waiting period for preexisting conditions before full coverage is obtained. This may occur when the employee has not had coverage for the previous 6 months.
5. Evaluate the small group insurance plans according to the amount of rate increase that is possible for increased health risks. Most insurance companies have set boundaries for small group plans, and they must charge within those guidelines.
6. Get to know the Federal HIPAA (Health Insurance Portability and Accountability Act) requirements for providing health insurance coverage by visiting the U.S. Department of Health & Human Services website (see Resources below).
7. Ask the insurance provider about the type of policy options for care. Your choices will likely be an HMO, PPO or POS plan. The least expensive choice is most likely the HMO, but your choices in care will probably be the least flexible. A PPO or POS plan will be more flexible, but also carry a slightly higher premium.
