- Providing world class service and value for employee benefit group plans since 1987
A quality employee health protection plan and workplace benefits package is one of the key markers that differentiate companies that attract the best talent and those that don’t. Thanks to recent changes in the way that team medical insurance and health savings accounts are administrated, the onus of providing a good health care option that will attract the best staff falls on employers.
Many employers may be hesitant to offer collective coverage 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 team benefit provider networks and health small group insurance options with plenty of flexibility, all while being tailored to the precise needs of your small businesses and their workers. Whether you have a small business with just a few personnels or a large company with more than 100, we will craft a workable and affordable package that fits your needs.
Large companies are typically seeking ways to reduce the cost of their health insurance without sacrificing quality. One increasingly popular way for large employers to accomplish that goal is self-insurance. With a self-funded assurance 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 protection expenses is cost-sharing with their staff members. Many companies pay a portion of the premium charged for individuals and family dependents, with the staff member 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.
When smaller employers implement self-funded policy, 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 protection 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 assurance.
In California, staff members have access to paid family leave benefits. However, the temporary disability program does not fully replace a worker’s income. Required benefits include at least three days (24 hours) of job-protected leave per year, with accrual limited to 48 hours as per law. In addition, California law requires employers to provide other unpaid leaves.
Both federal government law and state law do not have to provide paid holidays or vacation time. However, if a company does offer paid vacation days and the crew 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 the state will assist with these arrangements in an effort to reduce traffic.
Female staff are entitled to pregnancy disability leave of up to four months to allow the mother to bond with the newborn child or adoption. Other benefits include paid leave for a worker with a sick spouse or family member.
Dial 800-903-6066 and get a free consultation on California Medical Coverage & Employee Benefits.
The premium that a small business pays for health protection can’t be based on the size or health of the board.
To obtain a staff healthcare benefits package, it is often necessary for 75 percent of eligible employees to enroll.
Employers can choose whether they want to provide insurance to part-time employees working below 30 hours weekly. They may also be able to open a health reimbursement account for part-time crew members.
The small business health protection market is dominated by a few companies, including Blue Shield of California, Aetna, Anthem Blue Cross, PacifiCare, Covered California, and Health Net.
Taylor Benefits Insurance can help you find the best price and comprehensive health benefits.
Group Healthcare plans are designated as Bronze, Silver, Gold or Platinum, depending on the value each offers.
The ACA defines a small employer as one with up to 100 workers.
Tax premiums may be available—look for information on our site.
Individual workers are prohibited from receiving a subsidy for individual plans if you are offering a qualified plan.
The ACA provides some tax credits for companies with up to 25 workers that pay average wages of less than $50,000 annually. If your company qualifies, you may receive a tax credit.
California health insurance companies for individuals, families, and small businesses are listed below.
Oscar
Blue Shield of California
Cigna + Oscar
Kaiser Permanente
Anthem BlueCross
UnitedHealthcare
Covered California
You can also check out Covered California, which provides a marketplace for health plan options. Individual employees, as well as small business employers, can buy policy with subsidized premiums as a result of the ACA legislation. Get a quick overview of all small unit packages at no additional cost.
When choosing a collective medical coverage plan, consider factors such as coverage options, network of providers, cost, and workers’ needs. Compare different packages, assess the benefits offered, and ensure the plan meets your crew’s needs. Consult an insurance broker for guidance in selecting the right plan for your business.
Collective coverage for small business employers is expected to continue as a popular option in the coming years. With rising healthcare costs, many small businesses are turning to group coverage as a cost-effective way to provide medical coverage for their employees. Trends show that more small businesses are offering team coverage to attract and retain top talent. Additionally, with the implementation of the Affordable Care Act, there are more options and incentives for small businesses to provide health assurance to their crew members. Predictions suggest that coverage will remain a key benefit for small business employers, with more innovative and flexible options becoming available to meet the diverse needs of small businesses.
Offering group coverage for small business crews can enhance their satisfaction by providing access to affordable healthcare benefits. This can improve morale, loyalty, and productivity within the company. By pooling resources, small businesses can offer competitive benefits that attract and retain top talent.
In California, workers have several medical coverage options, including employer-sponsored plans, Covered California marketplace plans, Medi-Cal for low-income individuals, and private healthcare benefits plans. Employers with 50 or more members are required to offer health insurance coverage. Crew members can choose from HMO, PPO, EPO, or POS plans depending on their needs and budget. It is important to compare different packages and consider factors such as premiums, deductibles, and network coverage before deciding.
Before Congress enacted the ACA, small companies could face hefty prices for insurance due to the insurer’s ability to consider the age of employees and other factors that might increase the cost. Now, that’s not allowed. The ACA also prohibited insurers from raising rates or denying coverage due to pre-existing medical conditions.
The ACA implemented metal tiers for gauging the value of each qualified package. The categories are Bronze, Silver, Gold, and Platinum. For example, a bronze level plan will have a lower premium but will also cover less of the total average cost for a subscriber. At the opposite end of the spectrum, a Platinum level package will have a higher premium but will cover more of the service costs. Using ACA standards, a plan must cover at least 60 percent of anticipated costs.
Health policy needs vary from person to person. Fortunately, small employers can choose a health plan that meets their staff’s needs and budgets. Many employers provide one medical protection plan, such as a PPO or HMO. The package must at least be at the bronze level to satisfy the ACA requirements. In other cases, the employer may allow employees to choose between multiple plans based on their needs.
Here are brief answers to some frequently asked questions about health protection.
For organizations with more than 50 employees, large-group health assurance is an excellent option. Large team medical coverage plans often come with the following benefits:
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 healthcare benefits. Employers pay a predetermined premium, which they may share with personnels in exchange for providing many benefits to them and potentially also their families.
Another great choice is a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). Using this program, employers can give their workers a set amount of money –the company decides the amount—to reimburse their crews who obtain qualified individual healthcare plans.
It is also possible to create a Collective Coverage Health reimbursement package. The company would offer group health coverage while offering a monthly allowance for deductibles, copays, and other expenses.
Self-funding is a potential path, but it is risky for small companies. With a self-funded program, 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 team health package 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.
The cost for an employer to provide medical coverage 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 personnels 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 oversees most of the marketing and client administration for the agency with help of an incredible team. Todd is a seasoned benefits insurance broker with over 35 years of industry experience. As the Founder and CEO of Taylor Benefits Insurance Agency, Inc., he provides strategic consultations and high-quality support to ensure his clients’ competitive position in the market.
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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