Sunday, December 4, 2022


It most likely goes with out saying that almost all small enterprise house owners wish to do all they’ll for his or her workers. That is true for a number of causes, however the overriding incentive for house owners, in fact, is to retain and appeal to good workers.

Regardless of the widespread, typically media-perpetrated, fantasy of the cold-hearted and tight-fisted enterprise proprietor, most founders of small companies are former workers. As such, they’ve an inherent understanding and appreciation for what employees want and want from an employer.

And surveys have confirmed again and again that, greater than most every other class of perks and advantages, workers need reasonably priced well being protection.


There are a number of fundamentals that enterprise house owners new to the position, or who’re simply now contemplating well being plan choices, may have to know.

At the beginning, beneath the Reasonably priced Care Act (ACA), smaller companies with fewer than 50 workers should not legally required to supply medical insurance to workers. Conversely, bigger companies with 50 or extra workers are legally required to offer reasonably priced medical insurance.

The ACA defines “reasonably priced” medical insurance as protection during which the worker’s annual price isn’t any larger than 9.78 % of their annual revenue. By not providing medical insurance an employer with 50 or extra employees is topic to a penalty of $2,320 per full-time worker, excluding the primary 30 workers.

For small enterprise house owners with fewer than 50 workers (together with full-time equivalents, or FTEs) medical insurance protection will typically be bought within the small group market.


As a small enterprise proprietor, you will want to contemplate a number of components concerning small enterprise medical insurance, and the 4 details are: protection, variety of workers, worker premiums, and purchasing for protection.

Protection. If your organization is eligible for a small enterprise medical insurance plan, protection is mostly assured to be issued by an insurance coverage firm. In different phrases, neither you and your dependents, nor your workers will be denied protection primarily based on pre-existing medical situations. Which means all eligible workers and their dependents can enroll within the new plan no matter any medical situation.

Variety of workers. To qualify for small enterprise medical insurance protection, you have to have a minimum of one worker in your payroll. In California, house owners are typically counted as workers, which signifies that sole proprietorships with one worker fall into this class, as do partnerships with none workers.

Worker premiums. As an employer, you’re required to pay a minimum of 50 % of the month-to-month medical insurance premiums to your workers. The minimal proportion might fluctuate relying in your state or insurance coverage firm.

Easy methods to buy protection. As a small enterprise proprietor, you’ll be able to store for medical insurance protection at any time, with out ready to your present plan to run out or for the following open enrollment interval. There are a number of methods for house owners to buy insurance coverage, together with shopping for from suppliers immediately or utilizing a dealer.



The advantages derived from providing workers medical insurance protection plans are each tangible and intangible.

Among the many intangible, or unmeasurable, advantages employers can have is a stronger stage of job satisfaction in addition to higher firm loyalty amongst workers. Straight associated to it is a stronger place for attracting and recruiting fascinating candidates for job openings.

When you can’t connect a quantity or a unit of measurement on this stuff, quite a few surveys and research have continued to underscore the worth that employer-sponsored well being protection holds for employees.

Tangible advantages from providing medical insurance to your employees embrace probably way more reasonably priced protection for you because the proprietor and your dependents.

Along with presumably decrease well being protection prices for house owners, these with corporations which have fewer than 25 full-time workers (FTEs) might also qualify for tax credit in the event that they buy a plan by the Small Enterprise Well being Choices Program (SHOP) Alternate, an insurance coverage portal created by the ACA.

You don’t have to supply it to dependents or workers working fewer than 30 hours per week to qualify for the tax credit score.

To qualify, nonetheless, you have to meet the next necessities along with having lower than 25 full-time workers. You have to:

  • Provide medical insurance to all full-time workers
  • Entrance a minimum of 50 % of the premium price
  • Pay salaries of lower than $50,000 per full-time worker, on common, every year

Should you qualify, you’ll be able to obtain a tax credit score for as much as 50 % of your contributions towards worker premiums, which might considerably cut back the prices of offering well being advantages to your workers.

And guaranteeing that your workers have reasonably priced, high quality medical insurance protection can cut back prices that come up from lowered productiveness and absenteeism stemming from workers being sick.

As an article from the Harvard Enterprise Overview has identified,

“Employer-sponsored well being plans and wellness packages drive demonstrable enterprise outcomes, decreasing prices and producing larger returns:

  • A examine at one agency reported a 13.5% improve in worker well-being led to a median discount of 5.2% in medical prices per worker per 12 months.
  • For each greenback spent on worker wellness, medical prices fall $3.27 and absenteeism prices drop $2.73—a sixfold return on funding.”



At J.C. Lewis Insurances Companies, we perceive that you simply wish to present your workers with the most effective advantages package deal that you may provide. However we additionally perceive that there are numerous components and concerns concerned when selecting a well being protection plan.

As a family-owned and operated California medical insurance agent licensed to do enterprise in California, we focus on medical insurance coverage for small companies, and Medicare.

At J.C. Lewis Insurance coverage we wish to be your insurance coverage companion.

We are able to tailor our suggestions to your specific wants since we’re licensed with most main carriers in California. And, with J.C. Lewis Insurance coverage Companies, you save money and time, and we are able to shortly outline your specific wants and advocate the most effective merchandise and costs to fulfill these wants.

Whenever you’re selecting medical insurance coverage for you and your workers you’re more likely to have a number of questions and issues. That’s nice as a result of we welcome your questions on well being protection insurance coverage, and you’ll be assured that JC Lewis Insurance coverage Companies will show you how to discover the proper resolution.


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