Group Health Coverage Is Required
If your company takes on more than 50 employees, you will be required to provide them with health insurance options. That doesn’t mean you have to choose a plan that is out of your reach. An insurance agent can help you navigate the health insurance marketplace to find a reasonably priced plan that offers your employees the benefits they need. If you choose not to provide your large company’s employees with health insurance coverage, your business may be subject to penalties.
Small Employer Insurance Plans vs. Large Employer Plans
Small employers have less employees, therefore there are less people who will potentially enroll in their group health policy. This makes the plan more expensive for each individual, because the risk is spread amongst fewer people. By that logic, you can assume that large employer plans will have lower costs than small business plans.
The larger your company, the better you will be able to negotiate a deal with the insurance company. Keep in mind that a team of insurance agents can be essential in the negotiation process, so contact Proinsurance Hawaii to get help finding the optimal plan.
Large Employer Plan Tax Rules
In regard to tax costs, large employer insurance plans are a win-win for both employers and employees. On the employer’s side, their contribution to their employees insurance premiums are tax deductible. For employees, there is the benefit of premium payments being made using pre-tax income.