Different terms have been used to describe small businesses. It depends on the amount of income and the number of employees. A self-employed individual without a single employee could also be termed as a small business. According to the state you are in and the laws of that state, a business with at least 25 employees will always be referred to as a small business. In some other states, the numbers will go up to 100 employees.
Whatever the case, getting a group health insurance or small business health insurance is always a good idea rather than having everyone in the group getting their own insurance as an individual. It is an easy process and also comes with great benefits.
However, there are certain requirements you, as a small business owner need to have before you are fully eligible to get health insurance under Small Business Health Options Programs (SHOP), and there are also procedures that the law requires one to follow.
This includes the number of employees you have or whether you are a solo business owner and are running a self-employed business, the amount of income you get yearly and how much salaries each one of your employees gets, as well as whether or not you are offering health insurances to each of your full-time employees. Let’s dive deep into this;
How to get Health Insurance for Small Business
So how do you get small business health insurance? What is the process? What do you need to qualify for it? How small is a small business in the first place?
You are probably asking yourself all these questions but let’s start with the requirements you need to have to qualify. Not many things are demanded, just the above mentioned basics. Also, just to note, you will need to purchase the insurance cover for your small business through the Small Business Health Options Program, which was created by the Affordable Care Act.
Steps to Getting Health Insurance for Small Business
To get started, here are the steps you should take to get there;
Step 1- get in touch with health insurance companies to discuss options available
The number one thing you need to do first is to do your research on different companies, choose a couple, and have a chat with them to discuss the options you have for your small business. Getting in touch with multiple companies will give you different options in terms of available plans and prices.
Step 2- get an insurance agent to help you find the right option for your business
Getting insurance could be a headache of a task, especially for small businesses that don’t have a massive backup of HR departments. To avoid confusion, getting overwhelmed, and making the wrong decisions, it is wise to hire a professional to help out.
Step 3- explore different providers
Don’t settle on the first company you meet, make calls, chat with different companies, and talk to different providers will enable you to exhaust all options available and settle for the best.
Benefits of getting Small business health insurance
- It is a requirement by the law. If you have more than 50 employees, you are legally required to provide health insurance under the Affordable Care Act and might be subjected to a high-cost penalty failure to that.
- Protect the health of your employees
- Protect yourself as a self-employed individual (if you don’t have any employees yet).