Are you in need of a group health insurance plan for your small law office? Even very small law firms can qualify for group health insurance, and may be able to save money through lower premiums or potential small business tax credits.

If you’re on the fence about whether or not you can afford health benefits for the employees of your small law firm, read on to see how health benefits aren’t as hard to get as you may have thought.

What is group health insurance?

Group health insurance is an insurance policy that’s created for a business, such as a small law firm, and provides health care coverage for everyone who signs onto the plan. It’s usually less expensive than an individual health care policy because there are multiple members sharing the risk. Small business group health insurance provides coverage for any small business that has at least one full-time or full-time equivalent employee, even though the business isn’t required to provide health insurance under the Affordable Care Act (ACA).

Small businesses, such as a law firm, can get a group health insurance policy even if there are only a few employees. Everyone who works in this type of setting can take advantage of a small law firm health insurance policy and save money on healthcare insurance. This is true even if the office consists of a single lawyer and one or two paralegals.

How group health insurance works

Small business insurance for health care coverage is purchased by the appropriate member of the organization and offered to employees. That means a small law firm that wants to provide health care coverage for its employees can do so via someone who’s tasked with finding small business health insurance. Just about all small business insurance healthcare policies include:

• Premium costs are shared by the employer and employees
• Employees have the option to enroll or decline coverage
• Small business group health insurance requires a minimum of 70% participation by employees
• Family members and dependents can be added to the plan for an extra cost

Should you provide health insurance to the employees of your small law firm?

Before discussing the costs and benefits of health insurance for your small law firm, you should have an understanding of what these kinds of benefits can do for a small law office.

To learn more about how employees actually value health benefits more than a pay raise, read eHealth’s article on why small business owners should provide health insurance to their employees.

Some small business owners have missed out on the benefits of group health insurance, because they don’t think their group is large enough. Even if you are a very small law firm, with only a few employees, you still might be able to get group health insurance for your small law office. Most health insurance companies require a small business to have an owner, and at least one full-time equivalent employee. So don’t count yourself out of qualifying for group health insurance—even if your small law firm only has a few employees.

How group health insurance for your small law office can help you save money

There are plenty of ways that group health insurance for your small law office could help everyone save on health insurance costs. Some of these include:

• Splitting premium coverage between owners of the small law office, if there is more than one
• In general, premiums per individual tend to be cheaper with group health insurance plans
• If your small law firm employs less than 25 people, you have the chance to qualify for a small business tax credit

If you’re part of a small law firm that is equally owned by yourself and other practicing lawyers, the financial benefits of getting a group health insurance policy could be enormous. Because there are several “owners” of the firm, you may potentially be splitting the rest of the employees’ premiums with your co-owners, which means the cost of employees’ premiums doesn’t fall on one single person.

Even if you are the only “owner” of your small law firm, it’s very likely you and your employees will be saving on premiums per individual. According to an eHealth study on costs, trends, and insights in 2018, small business health insurance premiums are significantly more affordable than premiums for individual health insurance. In 2018, the average group health insurance premium per person was 7 percent lower than the average premium for an individual health insurance plan ($409 compared to $440).

_{Source: eHealth 2018 Small Business Health Insurance Report}

If you meet certain qualifications, you may also be able to get a small business health insurance tax credit, which can help very small businesses, like your small law firm, be able to offer group health insurance.

Law Firm Health Insurance: which plan is best?

It’s up to you what benefits should be offered to the employees of your small law firm.You’ll have to take into account factors such as which health insurance companies and plans are available in your area, and what your budget allows for.

According to eHealth’s 2018 insights, the most popular plan type chosen by small businesses was the Point of Service (POS) plan. This plan type looks a lot like Preferred Provider Organization (PPO) plans, but also has similarities to Health Maintenance Organizations (HMOs), which are often more limited, but affordable.

_{Source: eHealth 2018 Small Business Health Insurance Report}

The best health benefits for your small law firm will depend on the employees you’re covering in your small law firm group health insurance plan. Make sure to consider their needs when choosing a group health insurance plan for your small law office.

Also keep in mind that each plan has its own terms and limitations, so be sure to check the official plan documents to understand how that specific plan works.  This article is only for general education.

Additional health benefits for a small law firm

So you’ve decided that group health insurance is a must for your small law office, but what else is there for you to offer? If you want to add extras to your small law firm employees’ health benefits, some popular choices include:

• Group dental insurance
• Group vision insurance

These add-ons are great ways to go above and beyond with your small law office health benefits. For some, the difference between a job without benefits like dental and vision, and one with them, could be significant. In order to keep your workforce happy, and hire more excellent employees, consider adding benefits like vision and dental plans to your small law office health insurance coverage.

Is group insurance cheaper than individual insurance?

A small law firm health insurance group policy tends to be less expensive than individual insurance. This is because there are more people in the pool to share the risk and costs. A small business health insurance policy has a single price for the premium for a stated period of time, usually one year. The more people who sign up for health insurance under the group policy results in lower premiums for everyone.

What are the types of group health insurance?

There are a few types of group health insurance options that are designed to meet different needs. They include:

• Fully-insured plans where the insurance company takes on the risks of healthcare costs
• Self-funded plans where the employer accepts the risk of paying for catastrophic claims out-of-pocket
• Level-funded plans that use census information to determine the cost of small business health insurance
• Preferred Provider Organization (PPO)
• Health Maintenance Organization (HMO)
• High-Deductible Health Plan with a Savings Option (HDHP or HDHP/SO)

Who can buy group insurance?

A small business that has an owner and at least one full-time or full-time equivalent employee can get group coverage. That means a law firm that consists of one lawyer and one or two paralegals whose hours total one full-time equivalent employee can get small business group health insurance coverage.

Under the ACA, an employer who has less than 50 full-time or full-time equivalent employees is not required to offer health care insurance. A full-time equivalent employee is defined by two or more employees whose combined working hours total 40 hours. A small law firm with one or two employees who fall under this definition can get small law firm health insurance.

Find law firm health insurance with eHealth

Your small law firm doesn’t have to go without health insurance, and it doesn’t have to be expensive. A small business group health insurance policy is within reach of most small law firms. The various policy types available to small businesses offer flexibility and coverage that makes sense for the needs of the business and employees.

Check out eHealth for more information about small business group health insurance and how you can get healthcare coverage for you and your employees. You’ll learn how you can provide a benefit that your employees will appreciate and help everyone save money on their premiums.