Alliant Health Insurance

Small Group Business Health Insurance

It has often been stated that small businesses are the backbone of the U.S. economy and may employ as many as half of all private sector employees. Employees of small businesses typically do not receive as generous a compensation and benefits package as those offered to employees of larger businesses. In addition to compensation, employees of small businesses often rely on their employer to provide health insurance for themselves and their families.

Small Business Health Insurance facts:

  • In California (and most states), a small business (for employer sponsored business health insurance purposes) is defined as 2 to 50 full-time employees
  • Coverage can be established for most entities such as sole proprietorships, partnerships, and corporations (both S Corps and C Corps).
  • Owners and officers are generally eligible to enroll with proper documentation tying them to the business, as well as full-time W2 employees. Independent contractors (1099) are more difficult to cover on a business group health insurance plan due to not having the same employer-employee relationship as a W2 employee.
  • The pricing of small business health insurance depends on several factors such as: 1) the insurance rating laws of the state where the business is based, 2) the type of industry (i.e., Standard Industrial Codes are used), 3) the ages of the employees enrolling in the plan, 4) the number of employees and dependents enrolling,5) the overall health of the employees and dependents enrolling, and 6) the medical plans selected.
  • California law permits a health insurance company to file a Standard Rate or Risk Adjustment Factor (1.0 RAF) for small employers with 2 to 50 employees. From the Standard RAF, insurance companies can rate the small business health plan - or + 10% (.90 to 1.10 RAF) . The RAF is driven by the number of employees enrolling or group size and the overall health of the employees and dependents enrolling.
  • Today, insurance companies are providing small employers with greater flexibility in setting up a business health insurance plan. Many health insurance companies allow business owners to select a medical plan to use for an employer contribution or funding level, while at the same time providing employees the option of choosing other health plans that may better fit their individual needs.
  • Prices for small business health insurance plans are determined in accordance with where the small business is domiciled and the laws of that state. Prices for California-based small business health insurance plans are the same whether purchased through Alliant Insurance Services, another broker, or directly through the carrier. Our firm is product-neutral, meaning that Alliant Insurance Services will help you find the business health insurance plan and solution that is truly in your best interest as a small business owner.

To learn more about small business health insurance options, please complete the following census or call a representative now for assistance and to discuss your situation.