There is a common misconception amongst owners of small businesses that their companies are not large enough to warrant a group health insurance plan. These business owners are often misinformed about the nature of the policies that many health insurance providers have to offer, and are all missing out of the many benefits of a group plan.
Requirements for Small Group Insurance
The small group market requires companies to have anywhere from two to 50 employees. In this marketplace, you will not miss coverage due to having pre-existing medical conditions. The underwriters are looking for proper documentation that shows that you are a real business. As a sole proprietorship, you will need your business name statement and your Schedule C on your tax return. You will also need a quarterly wage report showing the salaries of your employees.
How Does Small Group Insurance Work for Partnerships?
As a partnership, you need a partnership agreement put together by an attorney that is signed and notarized. You will need a copy of your partnership tax return and the quarterly wage report.
How Small Group Insurance Works with Corporations?
As a corporation, you need a copy of the Articles of Incorporation and your statement of information. If you’re a C-corporation, you will need your statement by domestic stock, along with a copy of your corporate tax return and your quarterly wage report.
Like any smart, savvy business owner, you are going to view potentially unnecessary business expenditures with a critical eye. This is always smart, but if you write off the possibility as too costly without investigating your options, you could be missing out on an opportunity to build stronger loyalty with your employees as well as some great tax advantages.
Many health insurance providers are very aware of the needs of small businesses. In response, there are now a surprising number of options for group insurance plans that are affordable even for a small business budget.
Your business is unique. The chances are high that no ready-made plan will be a perfect fit in taking care of your individual requirements. However, this does not mean that you have no options. Just as insurance providers are aware of your cost issues, they know that for small businesses, a cookie-cutter plan just is not going to cut it. In response, you will find that you have many options for a completely customized group plan that takes into account what you actually need.
It is true that adding a group insurance plan will require some administrative work behind it. Luckily, as technology continues to improve, many providers have almost completely taken on this task themselves.