Deciding on an insurance plan for your employees can be tricky, especially for small businesses. You have to find a plan that adequately protects those involved in your company while also carefully considering how much to spend without threatening your profit margins. Small businesses must be far more attentive to their spending if they want to ensure the longevity of their organization. The group health plan setup process is tricky, but well worth it.
Group Health Plan Setup Checklist
Group health insurance is often a helpful tool for businesses seeking to save money and offer sufficient coverage for their workers. Here are two steps to complete before you apply for group insurance for your small business.
Examine Your Numbers
Small business health insurance generally applies to groups that have anywhere from one or two to 50 employees. At least one of these must be a full-time employee who is not a family member or partner of the business owner or employer. When you are calculating your numbers, remember that a full-time employee must work for 30 or more hours each week. It is also important to know that multiple employees working for a combined total of 30 hours each week count as a single full-time employee when determining small group health plan eligibility.
Another factor that can impact your numbers is whether or not the business owner or employer specifically oversees the employee’s work. This aspect is what usually excludes contractors from the employee count. Most insurance companies require 70% of your employees to be part of the plan, so consider how many of your workers must enroll to reach that minimum.
Decide Between a Broker or Carrier
If you know what insurance carrier you want to use, it makes the most sense to go directly through that carrier to obtain your insurance policy. However, if you need help finding a reliable and affordable option for your business, utilizing the skills of a broker may be a wiser choice. A broker can help a business that is undecided on a carrier to examine the benefits and drawbacks of group health plans from various insurance companies.
Be Prepared to Pay the First Month’s Premium Up Front
To secure your coverage right away, including a payment with your application to cover the first month’s premium cost is a smart choice. This will allow your policy to take effect as soon as your application is processed and approved.
About Arroyo Insurance Services
Arroyo Insurance Services was officially established in 1986, but we have roots dating back to before 1950. One of California’s leading client-oriented and independently owned agencies, we have over 140 employees with a combined experience of over 450 years, spread across 11 locations. We are committed to providing the best insurance and risk management services at the most competitive premiums, and backing it with hands-on service tailored to our customers’ needs. For more information on how we can mitigate your risks, contact us today at (877) 220-4769