If you have made the decision to offer health insurance as a small business owner, then congratulations! This is a big moment for your company, and you and your employees may soon have the benefit of expanded access to essential health care and medical services.

However, you may still have questions about group health insurance and what you need to do to set it up for your company. The good news is that the setup process does not require a lot of effort on your part since working with eHealth makes it easy to implement your new group health plan for your employees and you.

Whether you are just starting out with small company health insurance, or making the switch to a more effective group plan, eHealth’s brokers simplify the complex setup and onboarding process in a streamlined and efficient way.

Why is it important that your small business offers healthcare?

Offering medical insurance is a good idea for a small business for many reasons. Under the Affordable Care Act (ACA), businesses with at least 50 full-time employees are required to offer health insurance, but offering health insurance is important for various other reasons as well. Here’s why:

Offering group health coverage to improve recruiting success

Providing employees with access to health coverage (ideally, through a plan that also includes group dental insurance) is a great way to attract quality talent into your workforce. People want to work for a company that has great benefits, and offering health insurance can give you a competitive edge over other companies that your prospective employees may be interviewing with. So, if you want to build a strong team of employees for your business, you most likely will need to offer group health insurance.

Small company health insurance tax credits

If you have fewer than 50 employees, you are not legally required to offer them health insurance. However, in addition to the benefits of offering quality Health Reimbursement Plans to your employees, there are also tax breaks to be enjoyed.

According to the IRS, the maximum credits are arranged as follows:

50% of premiums paid for small business employers

35% of premiums paid for small tax-exempt employers

This credit is available to employers for two consecutive years. At the very least, these credits will make it easier to offer your team health benefits that will kick in and cover some costs when they need them. In short, you are not going to have to shoulder the entire burden yourself. As you can see, there are tax credits that apply to a range of small business health insurance options that you may choose from.

Cost-effectiveness of employee health insurance

Any good small business owner knows that offering quality health insurance to your employees will pay off in the long run. For starters, offering health insurance will attract quality workers. Second, it gives your team a feeling of security that will reduce their stress load and make them healthier and more productive.

And finally, an employee with good health coverage is more likely to utilize preventive care services, survive medical issues and continue to do good work for your company. Offering benefits helps to build loyalty with your employees because they know you care about their well-being. 

What is the average cost of offering health care for small businesses?

The average cost for small businesses to offer health insurance is as follows:

Individual coverage: $7,470 per year

Family coverage: $21,342 per year

While these are the average costs of small company health insurance, various other factors can impact the total cost, such as your total number of employees, number of employees who are in the plan, the location of your business, and more.

How to set up health insurance for your small business

eHealth’s registered brokers can help guide you through the entire process of setting up your group health plan. From the beginning, our licensed health insurance agents apply their professional knowledge and expertise to answering all of your questions.

One of the advantages of using eHealth is that our brokers give unbiased advice and insights about which health insurance plans your small business is eligible for. They can enable you to choose from the best selection of health plans available on the market from multiple insurance companies, allowing you to find the right policy for your business.

After choosing coverage that works for your company, the first step in setting up your new small business health insurance plan is submitting your application, which should only take about 15 minutes.

To get started on the application for your small business health insurance plan, you will need to provide this key information:

• Your business type
• The location of your business
• Who you want to offer coverage to
• Your employees’ ages, number of dependents, and email addresses

eHealth needs this information in order to present you with accurate rates for group health coverage. 

Your employees will then have the option to enroll in or decline health insurance coverage through a quick online and mobile-friendly application that eHealth will email to them.

As a business owner, consider how much you want your company to contribute to paying for monthly employee premiums. In most states, an employer must contribute 50% to employee premiums.

You’ll then be asked to verify your business type by providing the business tax forms last filed; these can be uploaded in the application. After you have provided all necessary information and documents, you will review final rates, provide your payment, and e-sign. To better serve your needs, you will have a small business account manager reach out to you to help your business finish the final steps for enrolling in your group health coverage.

Your account manager will provide tailored support as he or she assists with choosing a start date for your health insurance plan and follows up with you in case there are any additional requirements from the health insurance company.

Can eHealth answer my questions after enrolling in a group plan?

Once your small business is approved, you will receive official documentation from the health insurance company, which confirms when your group medical coverage will begin. After that start date and the completion of your enrollment, you and your employees can begin to use your plan’s health care benefits. eHealth will continue to support your business after enrolling in a group plan. For instance, our agents can help you to quickly add and remove employees to your new health insurance policy.

eHealth also serves as your advocate, even after you are done shopping and have bought your small business health insurance plan. By serving as the middleman between you and the health insurance company, we can assist you with resolving issues related to medical claims, all at no additional cost to you.

Due to your health insurance agent’s relationship with the insurance company, he or she can clarify your benefits and provide guidance related to helping clear up billing disputes. This free support from eHealth’s agents may reduce headaches when you need to deal with the insurance company, freeing up the resources you need to focus on what matters most for your small business.

eHealth makes it easy to shop for small business health insurance

When you work with eHealth, you can rest assured you will receive an excellent selection of options while benefiting from world-class customer service.

Visit eHealth today to quickly and easily find free group health insurance quotes. You can also speak directly with eHealth’s licensed agents to discover how your company can enroll in a plan optimized for you and your employees.

This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.