company health insurance

When you don’t have health insurance, a visit to the doctor’s or a night at the hospital will have your bank account crying for help! It’s not uncommon to hear individuals going bankrupt because of medical debt.The constant increase in premium also makes health insurance less and less affordable… especially when you don’t qualify for subsidies!

According to the release from Covered California, the health insurance premium will increase an average of 8.7% in 2019. Blue Shield’s PPO plan increased more than 20%. In 2018, a three-person household with an annual income of around $82,000 was unable to qualify for government subsidies. The premium for the most basic plan for Blue Shield PPO is around $750 per month. By 2019, the monthly premium might increase to almost $1,000.

If you are a small or medium sized business owner, company health insurance is a smart way to save money. Even if your company only has one employee, it won’t hurt to apply. Not only can you enjoy better benefits than you would in an individual health insurance plan, but the premium for Q3 and Q4 would be a lot cheaper, and the amount the company pays for this group health insurance could get written off as a business expense when filing taxes!

In the past few years, your company might have decided to terminate the group plan and let your employees purchase individual health insurance on their own to save more money. However, for 2019, we suggest reconsidering this strategy. The reason is that in 2019, group health insurance could offer way better rates and coverage compared to those offered in the individual health insurance market. Our group health insurance experts came in to give us some pointers and tips on company health insurance plans!

1. Group health insurance helps your company save money – the expense that is spent on your company’s group health insurance premium can be written off as your company’s expense when filing taxes. Furthermore, companies with less than 25 employees have the opportunity to receive up to 50% tax credit through Covered California’s SHOP.

2. The more and better medical benefits, the better talent you will attract – compared to a personal health insurance plan, the company group health insurance plan can provide better and more benefits. The amount you would have to spend out of pocket on an overnight hospital stay would also be reduced. You can also purchase an inexpensive 3-in-1 plan that includes dental, vision, and life insurance.  What’s even better is that unlike personal health insurance, which can only be purchased within that short 1-3 month open enrollment period (or within 60 days of a qualifying life event), employees and their family members insured under the company group health plan can enroll at the beginning of each month.

3. The boss can save on their own health insurance costs too! With an income as high as a business owner’s, many probably don’t qualify for any subsidies if they get their own individual health insurance plan. In 2019, it’s possible that the premium will increase to around $1,000 a month. However, if the business owner gets his/her health insurance from the group plan, not only is there a chance that the price will be lower, but the benefits will also be better. Having company health insurance becomes a win-win situation for the benefits of your company and your employees.

In the past, there were stricter restrictions on purchasing company health insurance plans, which made it impossible for many small and medium sized businesses to buy a group health plan. However, starting in 2018, the rule became more lenient, and now, companies with only 1-2 employees are allowed to apply for the company health insurance. Even if employees have their own personal health insurance plan, they can sign a waiver and it would not affect the company’s enrollment rate.

Health insurance experts at KCAL highly recommend SMEs to pay close attention to the price reductions during 2018’s Q3 and Q4. Feel free to contact KCAL Insurance Agency’s health insurance department and we can help you calculate everything and figure out whether group health insurance or individual health insurance is better and more cost effective for you!