Small vs Large Group Health Insurance

When talking about insurance plans designed for businesses, the size of the company matters. The ACA and individual state rules determine the standards for small and large group health insurance. California rules conform to the ACA definition of large companies as those employing fifty or more workers. The ACA provisions regarding full-time workers define full-time as averaging 30 hours per week or 130 hours per month. To calculate the number of full-time equivalents, the employer adds the total hours worked by non-full-time workers and divides by 120. If the full-time staff and the FTE number equal 50 or more, the employer is designated as large.

Small Group Health Insurance

A broker can typically assist a small employer with finding attractive and affordable options for group health insurance. Still, small businesses must receive comprehensive information about the options that are available based on their employee numbers. In addition, using a broker will help ensure that the company stays compliant with applicable rules and legal updates.  

Large Group Health Insurance

One of the perks of being a large employer is that the company has access to lower rates on health plans. Large group health insurance plans are typically more affordable than those available to small companies because they must serve more workers.