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As Philadelphia’s small business’ landscape continues to expand, employee benefits like health insurance are becoming increasingly vital for organizations aiming for growth and sustainability. Large group health insurance, in particular, stands out as a win-win option for both employers and employees. This article will explore why it makes sense for businesses to offer large group health insurance resources, the associated costs, and the key requirements to take note of.
In a competitive market, offering a comprehensive health insurance benefits package can give your business an edge. Talent in Philadelphia, like anywhere else, looks for workplaces that provide robust benefits, including quality healthcare coverage.
When it comes to large-group health insurance, there is often an economy of scale. The cost per employee tends to decrease as the number of enrolled individuals per health plan increases. This can make comprehensive coverage more affordable.
Large group plans often come with the benefit of stable health insurance premiums, providing both the company, employer, and employees with a sense of financial predictability.
Healthy employees are more productive and engaged. Offering a comprehensive health insurance plan encourages preventive care services, reducing absenteeism and contributing to a more positive work environment.
According to the Affordable Care Act, a business with 50 or more full-time employees is required to provide health insurance. Non-compliance could lead to hefty fines.
The cost of large group health insurance in Philadelphia can vary based on several factors such as the level of coverage, the health of the employees, and any additional benefits. On average, businesses might expect to pay between $8,000 to $16,000 per employee per year for medical care. Generally, employers cover 70-85% of these costs, passing the remaining amount on to the employee.
Moreover, the premiums that the insurance company or the business pays are typically tax-deductible, providing a financial incentive to offer this benefit.
To be eligible to qualify for large group health insurance, a business typically needs to employ at least 50 full-time or full-time equivalent workers. Health insurance companies close to this number should do a careful tally, considering part-time and seasonal workers who may count as full-time equivalents.
The plan must meet minimum value criteria as set by the ACA, with group health plans covering at least 60% of the total allowed costs of essential health benefits.
Employers must also ensure that the health insurance marketplace is affordable for their workers, defined by the ACA as costing no more than 9.5% of the employee’s household income.
Employers need to report information about the essential physical and mental health benefits and coverage offered to employees and share this with the IRS. Failure to meet these reporting requirements can also result in penalties.
As a business hub, Philadelphia presents numerous opportunities and challenges. One way to tip the scales in your favor is by offering large or small business health insurance. While the initial high medical costs can be considerable, the long-term benefits for employee well-being, talent retention, and overall productivity can provide an impressive return on investment. Given the intricate landscape of legal requirements, including ACA compliance, businesses should consider consulting experts in the field to make the most informed choices. Offering a robust individual or family health insurance plan is not just a legal requirement for larger businesses; it’s a smart strategy for success.
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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