- Providing world class service and value for employee benefit group plans since 1987
If you are looking for low-cost premiums on health insurance plans for your local business in Arizona, make sure you use a reliable and licensed insurance agent. Here at Taylor Benefits Insurance Agency, we can offer high-quality, inexpensive health insurance options for companies of all sizes, from Mom and Pop businesses to large corporations. We have a great history of developing relationships with the absolute best group health insurance carriers across Arizona. Our history and experience give us the ability to negotiate costs and ensure that your business gets the coverage you need.
Under the Affordable Care Act provisions, employers with more than fifty employees are obligated to provide individual health insurance to full-time employees. The health insurance must meet specific requirements, or the business will pay a penalty for noncompliance. While most of these regulated organizations already offered health insurance coverage before the ACA passed, they must now report information to demonstrate compliance with the statute. The main provisions for compliance are affordability and minimum essential components.
While the regulations require that coverage be affordable for the employee, no such requirement protects family member dependents. Affordability is set at 9.12 percent of gross income for individual coverage. Further, all plans must cap out-of-pocket costs for subscribers and may not limit the amount of any claims with annual or lifetime benefit maximums for any of the required components. The minimum essential benefits include:
Health insurance coverage can take many forms, including traditional point-of-service plans, preferred provider organizations (PPO), health maintenance organizations (HMO), and HDHPs (high deductible health plans), which are frequently paired with HSAs (health savings account).
In Arizona, small companies are constantly reviewing their health insurance offerings in an effort to save money and continue to provide coverage for their full-time employees. One attractive option may be a high-deductible health plan with a health savings option. The IRS defines high-deductible health insurance as having a deductible of at least $1,500 for individual coverage and $3,000 for a family. If the deductible is lower, the health insurance does not qualify for an HSA. Also, the maximum out-of-pocket expense can’t exceed $7,500 for an individual or $15,000 for a family.
The basic idea behind small business health insurance is twofold. First, the subscriber pays a lower premium in return for accepting a higher deductible. The subscriber can direct some of what they save in premium payments toward the HSA, which is a tax credit-advantaged account to pay for medical expenses, including deductibles and copayments. While the minimum deductible for small business health insurance is $1,500, many of the current HD plans have much higher amounts, often at or near the maximum out-of-pocket figures allowed.
If the subscriber doesn’t use the money they direct into the HSA by year-end, the deposits can accumulate. This provision is an essential difference between the HSA and flexible spending accounts, which have a “use it or lose it” provision. Instead, the money can continue to grow, and the subscriber can continue contributing to more significant expenses that may occur later. Even more notable is that this account can follow the subscriber into retirement. At that time, the account owner could use the funds for non-medical expenses. Many employers of small business health insurance plan partially fund the HSAs for their employees, but that isn’t necessary.
To create the best employee benefits package for your company in Arizona, consider a couple of factors. One is what is important to your workers and what matters to them, and another is your budget. Whether the business is large or small, many companies prioritize individual health insurance when crafting their benefits program because employees value it. If you can add dental and vision insurance coverage, that’s a great portfolio of health-related offerings.
Once they have access to high-quality health insurance, employees usually want to pay for time off. In Arizona, an employer with fifteen or more workers must provide up to forty paid sick leave hours per year. Smaller companies must grant up to twenty-four paid sick time hours. Employees can use the time for their own or a family member’s injury, pre-existing conditions, high blood pressure or any other medical condition to seek care and treatment. In addition, there are other allowable uses, such as school closure and domestic violence. Arizona employers don’t have to provide paid holidays or vacation time, but many do.
Why is it Important to Offer Group Health Insurance?
Group Health Plans cover eligible employees working for the sponsoring company. Typically, the premium paid for group health insurance is lower than for individual health insurance plans. The employer chooses whether to extend the coverage to the dependents and family members of eligible employees.
Buying group health insurance is beneficial for both employers and employees. Some of the benefits for the company include:
Employee productivity is improved when workers are more confident about their financial security and access to health care. Buying group health insurance gives your workforce the peace of mind to focus on their work rather than worrying about health insurance, medical services, and other potential financial concerns.
Large and small companies alike can enjoy the benefit of a more productive, loyal workforce. Your business may also enjoy a recruiting advantage as potential employees evaluate the key aspects of being covered by an employer-based healthcare policy.
Being a good corporate citizen helps you build a positive reputation in the industry, raising your profile with customers and vendors in addition to employees. Buying group health insurance demonstrates positive values, and the company can benefit from increased goodwill in the community.
Group insurance plays a significant role when it comes to retaining employees in small businesses. With comprehensive insurance coverage, employees can more easily protect their physical and mental health. Small business health insurance is an important contributor to worker loyalty.
The contributions that your company makes toward the expense of individual health insurance is a tax deduction. In addition, for small companies, there may be a tax credit worth available, depending on the average wages you offer and how much of the employees’ premiums you absorb.
As noted, company-based insurance is a benefit to workers and the company. Here are some of the advantages from the employee perspective:
One benefit of taking advantage of employer-based health insurance is that you will most likely get great coverage at a lower cost. Even if you don’t think you need health insurance, you can’t predict when you might be ill or have a pre-existing condition or an injury that requires costly care. If that happens, your group insurance will probably pay most of the expenses to the insurance company offering group health insurance coverage.
In many cases, employer-based coverage allows you to add your family members—like your partner or children—to the small business health insurance, simplifying and streamlining the family’s healthcare choices.
With individual coverage, you may not know where to find assistance with questions and claims. In contrast, when you get coverage through your employer, you typically have access to information and help through the human resources department. With a group plan, you often don’t have to pay for services upfront but may have to pay a deductible or copayment if the plan doesn’t cover everything.
As an employer, you may or may not have a legal obligation to provide health insurance coverage for your workers due to the Affordable Care Act (ACA). Still, you have health insurance options to choose from and should investigate alternatives before choosing the right health insurance company. Consider these elements before you choose an insurance company:
Your company priority might be to cut expenses, but it’s also crucial to choose a policy that satisfies your employees’ needs. The health insurance coverage is intended to help them, so ensure that you choose comprehensive health insurance coverage.
On the other hand, it’s vital to stay within your budget. The more employees you have, the more you will pay, although larger groups usually get a per-person discount. Also, be aware that health insurance costs go up almost every year, so your cost will most likely increase over time.
Try to find a balance between the need for a robust health insurance coverage and the amount you are willing and able to pay the insurance company.
These days, the majority of health insurance company policies written are for PPO (Preferred provider Organization) or HMO (Health Maintenance Organization) networks. The subscribers may be limited to getting service within the network or may have to pay more for out-of-network care, if it’s covered at all. For that reason, investigate the depth of the provider network. Employees will be much more satisfied with their coverage if they can seek care from the medical providers they prefer.
Some insurers are very prompt in processing claims and approving requests. Find out about the claims response for the insurance company you are considering so your employees don’t end up disgruntled about delays in processing.
There is no perfect coverage, but you can consider some variables to help you choose the policy that best meets your requirements. Here are some things to consider:
As an employee, you may be concerned about the potential disruption of your health insurance if you change jobs. That’s worth considering, but usually, you can find a comparable insurance company with your new employer. If not, you may need to change over to an individual health insurance plan.
All businesses of any size have obligations under the Affordable Care Act (ACA). If your company is small, you won’t be required to offer health insurance, but you may be eligible for financial assistance if you do.
At Taylor Benefits Agency, our brokers ensure your plan obeys the state law of the Affordable Care Act. Our licensed and experienced insurance brokers are educated and trained to remain on top of the changes made to the act. They’ll even audit your health insurance plan periodically to ensure that it keeps up with the ever-changing requirements listed in the act.
Give Taylor Benefits a call now to learn more and discuss the future of your group health plan and employee benefit plan. We will even provide you with a FREE quote!
Here are some answers to common questions regarding Arizona health insurance coverage.
Taylor Benefits Insurance Company can connect you with some of the country’s leading group health insurance companies. Years of reliable service have demonstrated that you can always rely on us to get you a great deal on large group coverage plans.
We work collaboratively with the following health insurance companies:
Small business owners can take advantage of several different kinds of health coverage.
The most common option for a small business is to choose a traditional group health insurance plan. Employers pay a predetermined premium, which they may share with employees in exchange for providing health benefits to their employees and potentially also their families.
Another great choice is a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). Using this program, employers can give their employees a set amount of money –the company decides the amount—to reimburse their employees who obtain qualified individual healthcare plans.
It is also possible to create a Group Coverage Health reimbursement plan. Small business health insurance would provide group health insurance while offering a monthly allowance for deductibles, copays, and other expenses.
Self-funding is a potential path, but it is risky for small companies. If you choose to pursue your own health insurance, the employer directly pays employees’ medical bills. The approach can save money, but the company will face exorbitant costs if one or more workers have a catastrophic claim.
Another avenue is to affiliate with an Associate Health Plan (AHP), which is a group health insurance plan in which several smaller companies in a particular industry or location pool together to buy group health coverage. By raising the number of participants, each one may get a more attractive deal than they could negotiate independently.
Taylor Benefits Insurance Agency offers benefit plans for companies and employees in Arizona for the following:
The cost for an employer to provide a health plan depends on multiple factors. The larger the company is, the lower the per-person price is likely to be. However, large companies with over fifty employees must ensure that the employees’ share of the policy premium is not more than 9.12 percent of their income. That could result in the company paying a greater share.
Todd Taylor with Taylor Benefits gives our small business the kind of personal service we need. Insurance benefits are important to our employees and Todd helps us find a balance between benefits and value. Todd responds immediately to my phone calls & e-mails. He has even gotten in touch with me on a Sunday when we were in need of coverage answers immediately. We are very pleased with the hands-on service Todd and his staff provide.”
-Ken and Linda Orvick, Orvick Management Group, Inc.
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