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Top 5 Health Insurance Options for Small Business

Small businesses with less than 50 employees are not required by law to provide health insurance to their employees.
However, these small businesses will find it easier to provide health benefits to their employees because they have clearly defined insurance options.

The past years have brought good news for these organizations because they can now choose from a selection of small group health insurances. The top five small group health insurances that are the most helpful for small businesses are discussed below.

Individual Health Insurance

The best insurance plans are those that cater to individuals. This insurance plan allows employees to buy individual health insurance coverage either through a broker or through the public Marketplace. Additionally, they have the option of buying insurance with or without a defined contribution allowance. Employees have the privilege of choosing any plan. They can also get discounts on their premiums as part of tax credits.
The company has the option of reimbursing the non-subsidized portion of their employee’s premium. This kind of health insurance makes more sense because it is very cost effective.

SHOP Marketplace

The SHOP Marketplace is a federally run or public state owned exchange that sells health insurance policies to small enterprises. A business with 50 or less employees would greatly benefit if they bought insurance from the SHOP Marketplace. But these organizations need to meet certain criteria. If there are between 1 and 5 employees, all the employees have to be enrolled. If there are between 6 and 50 employees, 75% of the employees have to be enrolled to the chosen insurance.

Small organizations can, this way, earn great tax benefits. Brokers can help small organizations choose the right kind of health insurance.

Private Health Exchange

Private Health Exchange plans come with defined contribution allowance. Employees get to make a pre-determined contribution (decided by the employer) towards a chosen insurance plan. But the employee gets to choose between an individual or group-based plan depending on his needs.

Startup insurance companies and new subsidiaries of leading insurance companies generally provide private health exchanges to small businesses. Brokers can also provide this kind of a health insurance.

Co-op

Small organizations or companies becoming a member of a co-op is the most common and traditional form of enrolling for health insurance. Being a part of a co-operative reduces the risks and increases insurance buying power.

But different co-ops are structured differently. They have their own rates and terms and conditions. In most cases these co-ops may not always provide profitable insurance rates like the SHOP Marketplace and the open market.

Private Small Group Plan

Private small group plans are insurance policies available for small companies on private markets. Some small businesses still prefer to buy private small group insurance plans. Compared to the SHOP Marketplace, private plans can provide better insurance options to small groups. Some states like Florida may be able to provide its employers with a select few of insurance options. As such it is better to go for private plans.

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