
California Group Health Insurance & Employee Benefit Plans
A quality group health insurance plan and employee benefits package is one of the key markers that differentiates companies that attract the best and those that don’t. Thanks to recent changes in the way that group health insurance and health savings accounts are administrated, the onus of providing a good health care option that will attract the best employees falls on employers.
For more information about small business health insurance plans, see this resource from the National Association of Health Underwriters.
Many California employers may be hesitant to offer a high-quality, comprehensive group health insurance option, largely because so much of that cost now falls on the business itself. In California, where it’s not easy or cheap to start and operate a business to begin with, this is an especially relevant concern.
At Taylor Benefits, we specialize in tackling this exact problem in a way that will appeal to businesses and employees alike. We offer a host of affordable group benefit provider networks and health small group insurance options with plenty of flexibility, all while being tailored to the precise needs of your business and its workers. Whether you have a small business with just a few employees, or a large company with more than 100, we will craft a workable and affordable plan that fits your needs.
California Large Group Health Insurance Plans
Large companies are typically seeking ways to reduce the cost of their health insurance without sacrificing quality. One increasingly popular way for large businesses to accomplish that goal is self-insurance. With a self-funded insurance plan, the employer pays directly for health care services used by the workers. However, employers almost always use an insurer or a third-party administrator. Some large companies attest to savings obtained from the approach, combined with the ability to offer a customized coverage package. Consult your Taylor Benefits Insurance representative for details.
Another tool employers use to reduce their healthcare insurance expenses is cost-sharing with their employees. Many companies pay a portion of the premium charged for individuals and family dependents, with the employee responsible for the balance. In addition to the premium, workers typically have a deductible and often a co-payment or coinsurance to pay when they use their coverage. Deductibles have been increasing for all types of plans, with notable increases in enrollment in “high deductible” options. In most cases, the subscriber must satisfy the entire deductible amount before services are covered, except for preventative care. If the subscriber has a co-payment, that is typically a specific dollar amount. In contrast, a coinsurance payment is likely a percentage of the price charged.
California Small Business Health Insurance Plans
When smaller employers implement self-funded insurance, as they are increasingly doing, they often employ a stop-loss component to limit their risk. This tactic is sometimes called level funding rather than self-funding since the company shares the risk with an insurer. The Kaiser Family Foundation survey reported a significant increase in level-funded insurance programs among small companies during 2021 compared to previous years.
However, the Kaiser survey uses a generous definition for small companies. Smaller businesses that don’t have to provide health care coverage may prefer to use the resources available to them from the Small Business Health Options Program (SHOP), which provides some coverage plans and tax credits for small employers that offer health insurance.
California Employee Benefit Plans and Employee Benefit Packages
In California, employees have access to paid family leave benefits. However, the temporary disability program does not fully replace a worker’s income. Companies must also provide at least three days (24 hours) of paid sick leave per year, with accrual limited to 48 hours. In addition, the state requires other unpaid leaves for employees who need them.
California employers do not have to provide paid holidays or vacation time. However, if a company does offer paid vacation days and the employee does not use them, they must receive pay for earned but unused days when they leave that job. While some famous technology companies have made over-the-top benefits like yoga classes, free haircuts, onsite catering, and other perks a goal for many, these remain unusual. However, some companies in major metropolitan areas offer commuter assistance, such as subsidies for employee vanpools or public transportation. Many counties in California will assist with these arrangements in an effort to reduce traffic.