Group & Individual Health/Life/Dental/Vision/Disability
Group Health Insurance
Overview:
Small Groups: California law AB1672 states that businesses with as few as two people and as many as 50 people may qualify for a "Small Group" health policy. The very unique features of small groups in California are as follows:
A business with as few as two (2) people may qualify for a small group health plan (one employer and one employee or even two partners, officers, etc. and no employees)
Unlike individual health plans, all small business group plans are guaranteed issue by law, regardless of the health condition of any person in that group
The premiums paid by the employer are tax deductible for the employer
Having a group health plan will reduce the employer's Workers Compensation insurance premiums
The employer can contribute as little as 50% to the employee's total premium (or in some cases as little as $100 per employee)
The employer may choose to have the employees' contributions to the plan to be exempt from income tax (Cafeteria Plan). The portion of the payroll exempt from income tax will reduce the Workers Comp insurance premiums even further
In addition to the advantages mentioned above, offering group health to the employees will have a major impact on employee retention.
Individual health insurance is subject to underwriting and is not guaranteed issue in California. The carriers may turn you down based on your health condition or health history and refer you to state sponsored plans.
Once you are offered a plan and enroll, you may not be canceled (except for non-payment of premium or fraud). However, if health conditions arise after the policy has been purchased, it is possible that you may not be able to upgrade to a richer plan or to switch to another plan from another insurer.
