How to get health insurance for small business owners small business health insurance arizona
Options for health insurance for small business owners depend on the size of your business.
small biz owners can get coverage from the following sources:
Individual marketplace. Choose this option to buy an individual plan through healthcare.gov. You may be eligible for premium tax credits depending on your income and location.
• Private individual plan. Many major health insurance carriers sell individual plans directly to individuals. You won’t be eligible for government health insurance premium subsidies with this.
Trade association plan. Professional trade associations allow members to buy into a group health insurance plans. This can potentially save versus private individual plans.
Medicare. Medicare provides health insurance coverage for seniors. Your age and Medicare tax contribution history will determine whether you qualify for this.
Multi-person businesses can get health insurance for small business owners from the sources below:
Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). With a QSEHRA, a small business allocates a monthly healthcare allowance for each employee. Then, they reimburse each employee for healthcare expenses when the employee submits proof of the expenditures. Businesses must have fewer than 50 employees to qualify.
Small Business Health Insurance Program (SHOP) marketplace: You must operate a small business within the state in which you want to offer a SHOP plan and your business must have 1 to 50 full-time employees (other than you or a spouse, family member or owner) to be eligible for a plan. You must offer the SHOP coverage to all full-time employees, and at least 70 percent must enroll.
Private group plan: Many major health insurance carriers sell group policies to businesses of varying sizes
The general rule is that if an employer offers group health coverage to any full-time employees, the employer must offer coverage to all full-time employees.
The employer has the option to offer coverage to part-time employees (defined as those working fewer than 30 hours per week). If the employer offers coverage to any part-time employees, all of them must be offered coverage.
These rules apply regardless of the medical condition of the employees. In other words, any eligible employee can’t be denied coverage based on previous medical problems, known as preexisting conditions.
In addition, any dependents of eligible employees are generally eligible for coverage under a group plan. Dependents include spouses, children, and in some cases, unmarried domestic partners. Dependents can not enroll for coverage unless the employee has enrolled. Under the Affordable Care Act, group insurance plans are required to extend coverage to adult dependents through age 26.