Why Offering Health Insurance Through Your Business May Be A Smart Move

Even though Covered California and the Affordable Care Act have been around for a few years now, modifications keep being made that make it difficult to keep track of what’s accurate and what isn’t when it comes to health coverage. As the process becomes more and more confusing for individuals, it also becomes more confusing for those who operate a business. With so many options available as far as coverage plans go, research is definitely needed to decide on a plan. But many small business owners are wondering something else—do I need to provide group health insurance? Should I?


The easy answer is that it depends on the number of employees you have working for you. If you have fewer than 50 full-time employees (over 30 hours per week), then no, you are not required to provide health insurance. While it may not be a requirement, it’s still a good idea. Here’s why.

Your employees are going to need coverage either way. Even though you’re not required to provide it, they’re required to have it. While they can obtain individual coverage through Covered California, offering health care through your business may be a smarter move. Some employees don’t want the hassle of finding their own health insurance and will search for a job with a bigger company that can definitely provide them with options. On top of that, providing coverage shows your employees that they are valued and that you wish the best for them.

Also, depending on your employees, you may be eligible for the Small Business Health Care Tax Credit upon doing so. To earn this credit, you must have fewer than 25 full-time employees who are making less than $50,000 annually. This program allows small businesses to benefit from helping out their low-income employees. In addition, small businesses that enact their own wellness programs may benefit from federal grants as well. It’s all about taking care of your employees.

To find out which group health insurance plans are right for your business, consult a Peter Green Insurance agent who can help you make the best decisions both for your business and for employee relations.

To learn more about group health insurance options, call Peter Green at (714) 258-2800 or get a free quote today.