Business Health Insurance (SHOP)

With almost half of all Americans receiving their health insurance from their employer, small businesses play an important role in helping to cover more Californians. Most business owners understand the competitive advantages of providing quality health insurance to their employees. Offering health insurance helps businesses find and keep the best employees and keeps them healthier and more productive.

The Affordable Care Act (ACA) created a number of provisions to encourage more employers to offer health insurance to their employees. Those provisions include making insurance more affordable and easier to purchase. Covered CA has made it easy for the small business to offer quality insurance to their employees, with the Carriers each employee wants, and all available on a single bill and managed on a single on-line platform.

Simplified Solutions, Greater Choice

Covered California’s SHOP will help business owners provide affordable insurance to their employees and make administration easy.

Easy Comparisons. Covered California lets employers easily compare and contrast a variety of health insurance plans offered by private health insurance companies. Everything an employer needs to compare plans is available online, by phone or from a covered California Certified Insurance Agent.

Predictable Costs. Regardless of which plans their employees choose, a business owner’s premium contribution will remain constant, allowing the employer the ability to predict and manage the health insurance budget.

Simple Administration. Covered California’s SHOP will make it easy for employers to pay for insurance. Even when employees choose different health plans, employers will issue a single payment to Covered California. Covered California will distribute the appropriate premium to each Covered California health insurance company that covers the employees.

Covered California will also make it easy for employers to continue working with their current insurance agent, provided the agent is trained and certified by Covered California. Only Covered California Certified Insurance Agents are permitted to counsel and provide employers with enrollment support.

Employer Control. Employers decide whether and when to participate in Covered California. Employers choose the level of coverage, the amount of the contribution toward the employees premium and, if dependent coverage is made available, any amount of the contribution toward dependent premiums. Once employers make these decisions, employees then choose the plan that best meets their needs, budget and lifestyle.

Tax Credits for Small Businesses. Small business owners may qualify for a tax credit to offset their contribution to their employees premium. There are two phases of tax credits. The first phase started in 2010, and will last to the end of 2013. For small businesses with fewer than 25 full time equivalent employees, who are paid an average annual salary of less than $50,000. Will receive a tax credit of 35%. (25% for non-profits). Starting in 2014, phase two kicks in and the tax credit increases to 50% (35% for non profits)

Generally businesses with 10 or fewer full-time equivalent employees and yearly wages of less than $25,000. Will qualify for the highest credits. To learn more about how to qualify for tax credits, call me at 707-324-9994, for a personal assessment.