Well we knew it wouldn’t last forever, but the Federal government just passed down another rule change that will provide another small roadblock for some Texas small businesses who wish to form a small group plan.
In years past, we used to be able to form a small group plan for businesses that were made up of only employees that are family members. Just this past week, that rule was changed to basically force those same “family” businesses to have at least one W2 employee that is not a family member.
Kind of a bummer, especially for those who were hoping to replace the ever increasing premium of the individual family health insurance policy. Not the end of the world though. As it turns out, that one W2 could end up saving the company quite a bit over time. The trend of premium differences between the individual and small group market have come together and small group is generally a little less expensive now for a comparable policy. It didn’t used to be that way at all. Why? Well since the Affordable Care Act was placed into force in 2010, the small group plans in Texas have generally maintained their choice of broad PPO, HMO and other networks whereas the family health insurance market has taken them away. In fact, there is not a single “true” PPO left in the Greater Houston area for individuals and families. The small group market has very few changes in that regard and the market remain far more stable.
Another positive from switching to a small group plan is that you gain many more options of plan designs to choose from. Not only do we offer coverage from most all major health insurance carriers in Texas, but the combination of plan designs is virtually unlimited.
Also, don’t forget that your new small group policy will be tax deductible through the business. Many Texas business owners mistakenly believe that they can pay premiums on an individual health insurance policy for their employees from the busniness and that it will be tax deductible. Nope. Think again. You’re gonna need that small business group health insurance policy to pull that off. Uh oh. Better call that CPA to make sure you’re not making any mistakes that will get you sideways with Uncle Sam.
Bottom line: If you do hire a new W2 to make up that one extra needed person, it will probably end up saving your company monies though not in the way you thought. You end up spending far less on the small business health policy and gain a trusted new employee who is more than happy to work for small concern that takes acre of it’s own.
Just give us a call at 866.270.6209 whenever you’re ready to see the price differences versus your current coverage. We will need you to fill out an employee census which will be provided once you reach out to us, but then you’re on your way.