A Complete Guide for Taking a Group Health Insurance Plan for Your Employees

group health insurance plan employee policies coverage

Are you considering getting group health insurance for your small business? There are some important things you'll want to consider before choosing the best health insurance for your company. 

Continue reading this guide so that you can be prepared when choosing a group health insurance plan. 


Consider Your Company Size 

Your eligibility for group medical insurance will depend largely on the number of employees you have. A company with no more than 50 employees can be considered a small business for insurance policy purposes.

If your company has more than 50 employees, you will need to apply for large group coverage. You will also need to meet your group coverage requirements and minimum group health insurance standards. 


Considered Your Employees

If you are the small business owner, you will need at least one other employee besides yourself to be able to qualify for a small business loan. The person on the health insurance plan can be the owner or the employee. However, there are some restrictions when it comes to considering an employee that is not the owner. 

The other employee on your plan cannot be a spouse, family member, contractor, or seasonal worker. This is the case even if a seasonal worker or contractor works for you full time at the time you're enrolling in a group insurance plan. 

To add employees to your group insurance plan, they must be full time or full-time equivalent employees. A full-time employee is someone who works for you at least 30 hours per week.

There are ways to consider your part-time employees full-time equivalent for health insurance purposes. For example, if you have 3 part-time employees that work 10 hours a week, you can combine their hours to qualify for 1 full-time employee, thus granting you access to group insurance. 

Your employees will also need to pass the common law test. This test will prove that as the owner and boss, your in control over the work of your employees as well as the way the person goes about doing their work. As long as you direct your employees in the process and development of final products, you should have no problems or setbacks due to the common law test. 


If You Have No Employees

If you are the only one who works for your small business, you are considered a sole proprietor, which means you cannot qualify for a group insurance plan. If you are a sole proprietor, you will want to look into individual or family health insurance instead.

To enroll in either an individual or group health insurance plan, head to carter insurance & investments, visit website.  


What to Know About Group Health Insurance

When looking into group health insurance for your small business, make sure to review this guide to know if your company qualifies, as well as which employees you can cover. Make sure you can make the best decision for your company by picking the right group insurance plan for your employees. 

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