Are you a small business owner here in California who is thinking of purchasing group health insurance coverage for your employees? Vitality Health Insurance is your California state resource for group health insurance California to cover your medical needs, those of your employees, and perhaps their dependents as well.
Youâ€™re a small business owner â€“ and for the sake of discussion in this section of our website we are focused on small business as being a group of 2-50 employees as constituting a â€śsmall groupâ€ť applying for California group health insurance. As a small business owner you might have been caring for your familyâ€™s health care needs via the use of an individual California health insurance plan. Now, if you are contemplating a move into California group health insurance coverage, you should be aware that coverage for small business here in California offers advantages not typically found in the process of securing a California health plan for the individual or family.Â
When your small business secures a group health insurance California plan you will be issued a single master policy while each of your employees will be issued a certificate of insurance (Think insurance card.). The master policy covers all eligible employees and â€“ if you as t he business owner decides â€“ their dependents as well.
The biggest difference between those individual California health plans you and your employees might have been using previously and the new California group health insurance policy youâ€™ll have now is that the insurance company looks at risk differently in each scenario: For individual California health insurance, the insurer calculates its premium rate â€“ or even goes so far as to deny coverage in the first place â€“ to the individual based on a detailed medical history of the applicant. Their underwriting process for California health insurance for the individual might even include the use of a review of medical records.
In a small business health insurance California group setting, however, the insurerâ€™s risk is calculated differently, basing its premium rate on risk factors spread out amongst a group of insureds. In place of the highly detailed applications you will see during an individual California health insurance application process, the group health application process will require the collection of more general information about the members of the group such as their age and gender. Most important in the difference between applying for California health care insurance as an individual and applying for California group health insurance? Insurance companies are required by law to offer business health insurance to your small group. They are under no such obligation should you apply as an individual for California health insurance coverage.
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Are you obligated by law to offer your employees or their eligible dependents California group health insurance? No, youâ€™re not. On the other hand, offering your employees access to affordable healthcare and perhaps even extending that coverage to their eligible dependents can mark you as a progressive, forward-thinking business owner who recognizes that employees with affordable access to California health insurance will be happier, healthier employees who will reward their employer with lower turnover rates, reduced absenteeism, and improved workplace morale!
Further, any time you secure California group health insurance for your business and its employees, and expenses you incur related to California health insurance for your employees or their eligible dependents will be 100% tax deductible as ordinary business expenses on both your California and federal income taxes. Business owners are always on the lookout for mutually beneficial business arrangements. This certainly sounds like a win-win to us!
So now we have improved employee performance and morale while securing a huge tax break for your California small business. Want in on this great win-win proposition? Contact the California group health insurance professionals at Vitality Health Insurance to learn more about securing a California business health insurance policy thatâ€™s right for your business!
Is your California small business eligible for California group health insurance? Letâ€™s take a look: If you are a small business owner in California you have the California state assembly firmly in your corner. Under California law AB1672, small businesses here in the state are guaranteed California group health insurance should they choose to pursue it and employee health status cannot be counted against the company.
We mentioned group size previously: 2-50 employees qualify as a California small group health insurance candidate. You count as an employee! So if you are the owner and have one employee, there are two employees! Partnerships of two people running a business jointly with no employees also fall into this category of eligibility for California group health insurance.
That same California law AB 1672 states that a small business canâ€™t be denied California group health insurance as long as the business:
Pays the premiums.
Has been a business for longer than two months.
Offers California group health insurance to all eligible full/part time employees.
Complies with the insurance companyâ€™s requirements concerning employer contributions and employee participation.
Havenâ€™t committed some type of fraud against the insurance company.
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Employee eligibility rules of thumb: If your business has group health insurance California and it offers that coverage to any full time employee (30+ hours per week) it must offer that same coverage to all its full time employees. Have a part time employee (20-29 hours per week) that you want to offer California group health insurance to? Then all your eligible part time employees must be offered that coverage as well.
Remember: Unlike California health insurance plans for individuals where pre-existing conditions can make the applicant either a sub-standard risk or uninsurable, an employee cannot be denied coverage or charged more due to pre-existing conditions for their California group health insurance plan.
While the California small business owner is not obligated to offer its California group health insurance to the employeeâ€™s dependents, most typically do. An eligible dependent would typically be a spouse, children under certain ages and educational situations (college student), as well as unmarried domestic partners.
As the California small business owner, what are your cost obligations as it relates to offsetting the cost of your employeesâ€™ new California group health insurance? Well typically most insurance companies are looking for the employer to cover at least half of the premium cost of the companyâ€™s California group health insurance. Insurers believe this cost sharing criteria between employer and employee encourages greater employee adoption of the health plan(s) being offered and reduces the risk of adverse selection amongst employees wherein only sick employees would sign up for the employerâ€™s health plan offerings.
While some employers pay the entirety of the of the premium cost for its California group health insurance plan it offers employees, others on the scale do go as low as the aforementioned 50% mark. Further, there are now some California group health insurance plans that will allow employer contributions to go as low as 25%. It should be noted that California employers are not obligated to pay for any portion of dependent premiums nor can dependents secure any portion of the California group health insurance benefits your company offers unless the employee themselves is enrolled in the California group health insurance plan. Your California group health insurance professional at Vitality is here to help you review the numerous options available to the California small business owner shopping for California group health insurance.
Well, what would a discussion of group health insurance California be without a discussion of cost, right? Your costs relative to the California group health insurance you secure for your small business will be in direct correlation to the important decisions you make about the scope of the plans you intend to make available to your companyâ€™s employees.
Todayâ€™s economic climate represents both a huge challenge and a tremendous opportunity to small business owners like you to craft meaningful California group health insurance coverage for your employees that is comprehensive in nature but also accomplishes it goal with an eye towards preserving the companyâ€™s cost structure which is absolutely vital to the financial health of your organization. Weâ€™ll work closely with you to review the many health coverage options that exist for the average California group health insurance policy choosing the options that make the most sense for your business: The number of options out there for the employer contemplating small group coverage are many and that range of choices can be intimidating but thatâ€™s why you have Vitality Health Insurance as your strategic partner:
You can select coverage plans that run the gamut from indemnity plans such as the ones you are probably familiar with from other California health plans where you visit a doctor, fill out claim forms and payment was between patient and healthcare provider all the way through the list of managed care options which count among the choices PPOs, POS plans, HMOs, as well as the use of HSAs – Health Savings Plans â€“ which are now used in conjunction with high deductible health plans (HDHPs). Depending on other factors such as prescription drug plans and various other supplemental plans such as dental and vision, you can see why the choices and the combinations in which they are presented to your employees can bring costs that are all over the board so to speak. Thatâ€™s where a Vitality group health insurance California professional will be there each step of the way to show you what each component of the health coverage program will cost your business and how adjustments made in consultation with you can bring the results you desire for yourself, your employees and their eligible dependents at the costs your business can afford for the long run.
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You own and operate a small business andâ€¦so do we! We are similarly involved in this critical element of business ownership so you not only have our expertise to rely on, you have our history to draw from as you make these vitally important healthcare decisions for your business.
A final thought before we go: If youâ€™re a California small business owner you might also want to check out the detailed information we offer in our California life insurance section: A California life insurance policy for a small business owner can be an incredibly vital part of responsible estate planning for a host of reasons. Please: Any questions on this, please let us know! Weâ€™re the professionals at Vitality and weâ€™re here to be the trusted strategic partner your California small business deserves!
California Dental Insurance
California Dental Insurance â€“ Dental coverage as part of your California health insurance strategy features some of the same elements youâ€™ve seen in the California medical plans weâ€™ve been discussing: The use of managed care via PPO and/or HMO networks. California dental insurance plans offered through insurance companies will typically rely on the creation of networks that offer discounted services by dental service providers who have contracted with that network to provide services at discounted rates. Features of California dental insurance plans include an annual deductible (typically small), coinsurance, and while annual benefits in plans such as these arenâ€™tÂ typically very high (Say $1000-$2000) they are very helpful in providing good coverage that can be readily used for preventative care such as exams, cleanings, X-rays, and the like. Keeping out in front of dental problems before they occur can be a great cost saver to you in the years ahead so these plans do serve an important function as part of a dental â€śwellnessâ€ť strategy for you and your family.
California dental insurance can also introduce another element of the medical plans weâ€™ve discussed earlier: The use of the usual, customary and reasonable fees (UCR) in indemnity plans. The UCR feature basically says that if the dentist puts in a filling, the insurance company will pay that dentist based on what is usual, customary, and reasonable for dentists who are performing that same procedure in that general area. In other words: That dentist is not going to get $120 for that filling when all the other dentists charge $80 in that zip code.Â If you use that dentist you will be responsible for picking up the difference between the UCR and the dentistâ€™s fee. Two last comments: Some California dental insurance plans do offer partial coverage (50%) for such major dental services as root canal, crowns, extractions, and so forthâ€¦but these policies also can come with waiting periods upwards of 6 months on up to 12 months. Thatâ€™s a long time to wait should you need a major dental service like a root canal or a wisdom tooth extraction. We suggest: Get the California dental insurance plan before you need it. And please: Use the coverage you have to take good care of your teeth with regularly scheduled checkups and cleanings! Vitality wants you to keep your healthy smile!