If you have 50 or less full time employees, you will not be penalized by the federal government for failing to offer group health insurance to your employees. If you have 50 or more full time, or full time equivalent, employees, then you may penalties if you do not offer health benefits to your employees. Even if you are a small group employer who wants to either boost employee retention or offer competitive benefits packages, there are a few paths you could take to accomplish that goal.
PATH 1
Offer Health Benefits
Your business can subsidize as much as 100% and as low as 50% of the monthly health premium payments for your employees. All of the premium assistance the business offers are tax deductible.Offer Health Benefits
PATH 2
Offer a Health Reimbursement Arrangement (HRA)
These are employer funded accounts that are allotted to each individual employee to use for any medically charges including premium assistance for any individual marketplace health plan. These employer contributions are also tax deductible. CalHealth is contracted with Insurance Savings Groups to offer a unique benefits card that fulfills the purpose of an HRA and can be used just like a debit card for all health care purchases.
PATH 3
Offer a Flexible Savings Account
Employers may make contributions to an employees FSA, but there is no specific requirement to do so. With an FSA, an employee submits a claim to the company’s FSA with proof of the medical expense and a statement that it hasn’t been covered by any health plan. They’ll then get reimbursed for their costs. Again, FSA’s are tax deductible.
PATH 4
The Family Glitch
One major reason employers decide not to offer health benefits is because of the additional costs of an employee’s spouse and dependents. In 2023, the federal government authorized a way to have an employer offer an employee health benefits while allowing the spouse and dependents to go on federally subsidized health care through the various state exchanges. This allows an employer to curb his costs by only offering benefits to the actual employee, while allowing the employee to still obtained subsidized coverage for his family. CalHealth specializes in servicing both the employer’s health plan AND taking care of his family through CoveredCA.
If you are interested in offering your employees (including yourself) group health benefits please don’t hesitate to reach out to us. We can set you up with multiple carriers, various options, and we do everything from quoting to enrollment to serving your plan. We become like a mini HR department to you and it doesn’t cost you a penny. Contact CalHealth today!