I bet you’re looking for an affordable health insurance for small business.
You’ve come to right blog. We are here to give you some tips and help you find health insurance for small business in no time.
Let’s go over things you should know about Small Business Health Insurance.
Everything you need to know including where to get effective yet cheap health insurance for small business will be on this page. Just keep on reading and find out how Small Business Health Insurance work.
What is SHOP coverage?
SHOP stands for Small Business Health Options Program. Any small business in Oregon with 1 to 50 employees can purchase a certified plan from one of the participating insurers.
How to qualify for SHOP?
Your business qualifies if you:
• Have an office or employee work site within the SHOP’s service area.
• Have 50 or fewer full time employees.
• Offer coverage to all of your FTE employees (works about 30+ hours/ week).
• Enroll at least 70 percent of your FTE employees in your SHOP plan.
However, employees with coverage through another employer plan, Medicare, Medicaid, the military or veterans’ programs are not included in the calculation.
Note: Employers who enroll in SHOP coverage between Nov. 15 and Dec. 15 each year can offer SHOP coverage without meeting this percentage requirement.
Is my business eligible for tax credit?
Your business can qualify for tax credits, if you meet the following criteria:
• Employ fewer than 25 full-time equivalent (FTE) employees (not including family members of owners/partners or seasonal workers who work fewer than 120 days during the taxable year)
• Pay average annual salaries of $50,000 or less per employee
• Pay at least 50 percent of FTE employees’ premium health care costs
• Purchase a certified medical or dental plan from a participating insurance company
Want to know how much tax credit you’ll be eligible to help pay for your group insurance? Check this tax credit calculator.
Do I have to provide insurance to my employees?
If you have fewer than 50 full-time employees: You won’t face a penalty for not having a health insurance for small business.
If you have more than 50 full-time employees: You may be subject to a fine if you don’t provide affordable health insurance that meets minimum coverage standards. The cost of health insurance should not be more than 9.69 percent of employee’s annual income.
Fines by the IRS are calculated as follows:
• No coverage offered: $2,260 x (FTEs – 30) per year
• Coverage offered but is not affordable or does not meet the MEC requirements: Lesser of the above equation or $3,390 x FTEs that receive an Advanced Premium Tax Credit. For example, if an employer has 50 employees, 21 of whom get coverage options through HealthCare.gov, and does not offer coverage that meets the requirements, the employer will have to pay a penalty of $47,460 ($2,260 x 21 = $47,460).
You can visit this Employer Shared Responsibility Payment page to get more information.
Do I have to offer coverage for employees’ spouses and dependents?
No, if you are unable to offer them health insurance, they can get health coverage thru health insurance marketplace and may qualify for financial help to pay for their health care premium.
What if an employee declines the insurance offer?
If an employee decides not to sign up for health insurance plan you offer, he/she can sign up for a plan thru health insurance marketplace during open enrollment period (Nov. 1 to Dec. 15) but will not be eligible for financial help. If they don’t get health insurance, they may also have to pay a penalty and it will be any of these two whichever is higher:
• 2.5 percent of their yearly household income
• $695 for every adult in their family plus $347.50 for every child younger than 18
Need to get health insurance for your employees?
Let us know. Plans are offered by Health Plans In Oregon, your licensed health insurance agency. We’re here to help you do side by side comparison of all affordable health insurance for small business in Oregon that will fit your business’ and employees’ need.
We’ll make it simple and easy for you:
Call Health Plans in Oregon at 503-928-6918 or send an email to info@healthplansinoregon.com.
Also see: Signing Up For Family Health Insurance
>>>Click here for Explainer Video
SRC: http://healthcare.oregon.gov/Documents/5069.pdf
