Small Business Health Insurance

In California, Assembly Bill 1672 guarantees that businesses with 2 or more people will receive Health Coverage regardless of PRE-EXISTING MEDICAL CONDITIONS. (Husband and Wife may be considered 2 people).

Health insurance for small business is often provided for the employees by the employer, although it is not required.

What types of small business health insurance are available to me?

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Most small business owners provide health insurance through group plans which use organized medical networks. There are several types of networks: HMOs, PPOs, POSs, and the new Health Savings Accounts. You should know about each of them because each has characteristics that will affect your choice for new health insurance.

HMOs often have lower premiums but they must be available in close proximity to your employees and the workplace. PPOs and POSs tend to cost slightly more but are flexible for your employees, allowing them additional choices of doctors and medical care. Choices often make people happier. The Health Savings Accounts (HSAs) are new and can provide a means for tax-free savings for you and your employees. For your convenience, each type of group health insurance network has detailed descriptions elsewhere in the website, as well as in the Glossary.

How can I lower the cost of my insurance plan?

To lower the cost of an insurance plan, you will soon learn that changing the deductible affects the premium more than anything else. Other coverages in an insurance plan affect cost also. There are optional coverages that can be included in group plans.

For the small business owner looking for health insurance, these are the main points to consider:

Most small businesses provide health insurance through a group plan.
You should understand the various types of networks used in group health policies (HMOs, PPOs, POSs, and the new Health Savings Accounts).
The amount of the deductible (which you choose when setting up the plan) greatly affects what you will pay for the premium.
It might help to compare your final two possible plans by running some totals: compare the annual premium you would pay and the speculated amount your employees would pay out-of-pocket yearly with both final choices. See what the differences are money-wise and if both you and your employees can live with the amounts.
Your decision about which type of group health insurance will probably come down to a compromise, considering your total costs for the policy, the services provided, and the probable ability of your employees to pay out-of-pocket expenses.
Some states allow small businesses to form alliances which then purchase group insurance at a savings.

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AND Please HAVE SOME OF THE FOLLOWING INFORMATION AVAILABLE: (800) 707-3397 (TOLL FREE FOR CALIFORNIA RESIDENTS)

Example: The date your company started

the date you'll like coverage to begin
the names/initials of each employee
the home zip code of each employee
each employee's date of birth
each employee's dependents, including spouse and number of children