Georgia Small Business Health Insurance Information.
 |
| Georgia Small Business Health Insurance Information. |
This guide's goal is to give you a broad introduction of Georgia Small Business Health Insurance.The guide reviews small business health insurance options for small businesses in Georgia.
Georgia Core Small Business Health Insurance Options
When comparing the prices and benefits of your small company health insurance alternatives in Georgia, you should consider the following three options right away:
1. Offering traditional small business health insurance coverage,
2. Offering a defined contribution health plan that pays employees for individual health insurance coverage, and
3. Offer nothing
Georgia Small Business Health Insurance Overview
There are two main categories of health insurance to choose from for small businesses:
1. Personal health insurance,
2. Group health insurance.
1. Individual health insurance
A personal health insurance plan is a health insurance plan that individuals purchase to cover themselves or their families. Anyone can apply for individual health insurance. Small business owners who can offer group coverage with minimal contribution (or minimum participation) requirements usually purchase personal and family plans for themselves and their families. In 2014, insurance companies will no longer be able to deny individuals individual health insurance based on pre-existing medical conditions. Also, starting in 2014, new special tax incentives are available for businesses and employees when employees purchase personal health insurance. In some cases, self-employed individuals who purchase their own health insurance may be able to deduct the cost of their monthly premiums. When small businesses decide on an individual health insurance route, they often create a "pure" defined contribution health plan so that employees are tax-free refunds for individual premiums.
2. Group Health Insurance
A group health insurance plan is a type of employer-sponsored health coverage. Costs are usually shared between employers and employees, and coverage may extend to dependents. In some states, self-employed persons other than other employees may qualify for group health insurance plans.
There are four different types of health insurance plans for small businesses in Georgia.
There are various different types of health plans available, whether you're seeking for individual or group health insurance. The following are the four things you must know:
1. Health Insurance Plans with PPOs.
2. Health Maintenance Organizations (HMOs).
3. Health Insurance Plans That Are HSA-Qualified, and
4. Health Insurance Plans with Indemnity.
What you and your employees want, as well as how much you are ready to spend, will determine which plan type is ideal for you and your employees. Here's a quick rundown of the four most common types of health insurance:
1.PPO (Preferred Provider Organization) Health Insurance Plans:
PPO (Preferred Provider Organization) plans are the most frequent. In order for claims to be reimbursed at the highest level, employees covered by a PPO plan must seek medical care from doctors or hospitals on the insurance company's preferred provider list.
2.Health Maintenance Organization (HMO) Health Insurance Plans:
HMO stands for "Health Maintenance Organization." HMO plans provide a wide range of health-care services through a network of providers who either contract with the HMO exclusively or agree to provide services to members. Employees in HMO plans will often need to choose a primary care physician ("PCP") who will handle the majority of their medical needs and refer them to HMO specialists when needed.
3.Health Insurance Plans That Are HSA-Qualified:
HSA-qualified plans are PPO plans that are meant to work with Health Savings Accounts (HSAs). An HSA is a type of bank account that allows individuals to put money aside — before taxes – for future medical bills. Because of the benefits to employers, Section 105 Healthcare Reimbursement Plans (HRPs) are frequently employed in place of HSAs.
4.Indemnity Health Insurance Plans:
Indemnity health insurance plans allow members to manage their own health care and visit any doctor or hospital. After that, the insurance company pays a certain percentage of the overall charges. Employees may be expected to pay for some treatments up front and then submit a refund request to the insurance company.
*Health Insurance Coverage in Georgia for Small Businesses:
1. For subscribers who do not have prior coverage, there is a maximum 6-month look-back/12-month exclusions period for pre-existing conditions. Benefits will differ depending on the plan selected. Pre-existing medical issues are taken into account.
2. Individual Plans: Various plans based on medical need. Enrollees who do not have prior coverage have a maximum look-back time of 60 months and a maximum exclusion term of 24 months for pre-existing conditions. Riders who want to eliminate themselves are allowed to do so. There may be restrictions on pre-existing medical issues.
3.COBRA: Depending on qualifying occurrences, coverage is offered for 18-36 months. Benefits are similar to those provided by your prior employment. Pre-existing medical issues are taken into account.
4.HIPAA: Benefits are determined by the program chosen. There is no time limit on coverage. Pre-existing medical issues are taken into account.
5.HIPAA: Payment assistance is offered to cover the cost of employer-sponsored health insurance or the Cobra premium. Pre-existing medical issues are taken care of.
Eligibility for Georgia Health Insurance:
1.Group Plans: Coverage is guaranteed for businesses with 2 to 50 employees. Employees must work at least 30 hours each week to be eligible. The owner can be considered an employee. The company must pay salary to the owner listed on the business license.
2.Individual Plans: Medical underwriting determines eligibility. You may be eligible for AHIP or PCIP if you have been denied coverage for a medical condition.
3.Employees who work for businesses with 20 or more employees are eligible for COBRA coverage, which provides guaranteed coverage. Employees have 60 days from the date of termination to sign up for unemployment benefits.
4.HIPAA: Must have had continuous coverage for at least 18 months and fully exhausted Cobra or state continuation coverage. Insurance coverage must not have been revoked due to fraud or non-payment of premiums. You've got 63 days to sign up.
5.HIPAA: Must be eligible for Medicaid and have employer-sponsored insurance or Cobra coverage.
The cost of Georgia health insurance on a monthly basis is:
1.Group Plans: Costs are determined by the employer's contribution plus 20% of the insurance company's index rate.
2.Individual Plans: Individual coverage costs vary. There are no rate ceilings in place.
3.COBRA premiums range from 102 percent to 150 percent of group health insurance rates.
4.HIPAA: Premiums will vary according on the plan selected.
5.HIPAA: Provides a monthly check for the entire amount of an employer-sponsored insurance premium. For consumers on COBRA or qualified small enterprises, this payment is made straight to the insurance company.
*StateHealthFacts.org is the source for this information.
Reforming Small Business Health Insurance:
Are you prepared for the Affordable Care Act (ACA) in 2014?
Employers are more worried than ever before. This is why:
1.The corporate climate is tumultuous.
2.The cost of employer-sponsored health insurance rises every year, and
3.New fees and penalties go into force next year, and most employers aren't sure how they'll affect their bottom lines.
educate themselves and plan ahead of time, on the other hand, can escape significant financial consequences.
The more change and disruption your firm can accept, the more long-term cost savings (for both the company and your employees) you will be able to realize. You must be conversant with the fundamental components of ACA in order to embrace this transition.firms, however, the solution to healthcare reform is straightforward: Provide a "Healthcare Business Expense Account." Employers can now get out of the health insurance business by giving select employees monthly allowances to spend on their own health insurance policy on a state health insurance exchange, thanks to a new vehicle called a Healthcare Reimbursement Plan (HRP).
purchasing small company health insurance, there are several crucial ACA components to consider.
Health Insurance Tax Subsidies, on the other hand.
people who sign up for a silver plan on the exchange. If their household income is less than 400 percent of the federal poverty level, the subsidy limits the cost of individual health insurance to 2% to 9.5 percent of their household income. For a family of four, this works up to about $90,000 per year.
Click here for more information on the premium subsidies.
most people to acquire health insurance.
insurance. Most people are required by the Individual Mandate to acquire health insurance or face a tax penalty each year. The individual penalty is intended to limit the "Free Riding" effect in the health insurance market (a free rider is someone who is healthy but does not buy health insurance until they need it).
Click here for more information on individual tax penalties.
Tax Credits for Small Businesses with Health Insurance.
Small firms with up to 25 full-time equivalent employees may be eligible for a tax credit if they provide health insurance to their employees. There are two parts to the credit. A tax credit worth up to 35 percent of a small business's health insurance expenditures is included in Phase 1 (2010-2013). Phase 2 (beginning in 2014) offers a tax credit of up to 50% of a small business's health-care costs.
Click here for more information the tax credits.
Tax Penalties for Small Businesses with Health Insurance.
Employers with 50 or more full-time equivalents who do not provide minimum necessary coverage will be subject to monthly penalties beginning January 1, 2015, if at least one employee utilizes a premium tax credit to purchase health insurance through the state health exchange. These sanctions do not apply to businesses with less than 50 employees.
Click here for more information on the business tax penalty.
Defined Contribution Plans:
The Future of Small Business Health Insurance.
Employers can provide health benefits without having to offer a standard group health insurance plan by using Defined Contribution Plans. Employers offer tax-deductible monthly allowances to their employees to spend on private health insurance and other medical expenses tax-free, rather than paying for a specific group health plan.
The following are characteristics of defined contribution plans:
1.Employee Choice — employees select the health insurance plan that best meets their requirements.
2.Regular Cost — By offering fixed monthly allowances to their employees, firms can keep health-care expenditures under control.
3.Employers who use Defined Contribution Plans often pay less than group health plans, which saves both the employer and the employee money.
Next Steps – Assess Your Three Primary Options.
Compare the costs and benefits of the following three choices right away:
1.Traditional Small Business Health Insurance is available.
2.Offering a Defined Contribution Health Plan that reimburses employees for individual health insurance coverage, as well as a Defined Benefit Health Plan.
3.Nothing is being offered.
Read also..
Health Insurance Costs and Modern Medicine.
Is Florida Home Insurance Too Late to Get in Line For a Washington Bailout?
