When Does My Small Business Have to Offer Health Insurance?


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When you are a small business owner, the health, safety, and well-being of your employees are your priority – and, to an extent, your responsibility. Undoubtedly, upholding the very best workplace safety standards is important, but there may be way more that you could do to take care of the mental, physical, and financial well-being of your team – out and in of the work premises!

Offering comprehensive medical insurance coverage or health advantages (even in case you will not be legally required to accomplish that) is an ideal solution to attract one of the best talents and create a healthier workplace for all. Here’s a quick-start guide for small business owners.

Does Your Business Need To Offer Health Insurance?

With the introduction of the Reasonably priced Care Act (Obamacare) 2010, some businesses are required by law to supply medical insurance to their employees. The law specifies that applicable large employers (ALEs) who’ve 50 or more full-time equivalent employees (who work not less than 30 hours every week or not less than 130 hours a month) are required to supply medical insurance. 

When you run a small business that employs lower than 50 full-time employees, you’re exempt from having to supply medical insurance. And yet, in accordance with the Kaiser Family Foundation, over 31% of small businesses – or nearly 1 million American small firms – with fewer than 50 employees offer some health coverage. 

While this percentage is lower in businesses with 2-15 employees, the vast majority of small businesses which might be seeking to grow or employ 16-50 employees offer some health advantages. The budget is likely to be tight in any respect stages of a business, but investing in medical insurance is a small price to pay to draw among the industry’s top talents!

When Should You Offer Health Insurance to Your Employees?

So, your small business may not be required by law to ensure Health Insurance to your employees. But this doesn’t mean that you just shouldn’t! 

As political administrations change, it is probably going for the laws concerning worker medical insurance to vary too. Because these changes may be sudden and unexpected, it is necessary to have a framework in mind to maintain your enterprise compliant. Ideally, it’s best to work in partnership with legal experts and HR professionals to grasp whether your enterprise would offer medical insurance under the ACA. 

Moreover, for the reason that scheme’s introduction in 2015, many small businesses have voluntarily participated within the ACA’s Small Business Health Options Program (SHOP). The SHOP allows small firms to pool in with other businesses and access inexpensive state-based medical insurance policies. 

4 Advantages of Offering Health Insurance to Your Team

As seen above, small businesses with 50 full-time employees or fewer aren’t required to take a position in worker medical insurance. But selecting to accomplish that can bring some unmissable advantages. These include:

  1. Attracting top talents – because the Great Resignation rages on, businesses are scrambling to draw and retain top talents. Alternatively, professionals have raised their expectations, now searching for higher compensation and greater advantages. Offering medical insurance will help your enterprise stand out against the competition.
  2. Aligning with the industry’s standards – recent studies show that 84% of employees and 71% of HR professionals imagine that firms will focus an increasing number of on guaranteeing their employees’ financial, mental, and physical wellbeing. Offering insurance today will help your enterprise sustain with an always-changing market.
  3. Supporting a healthier workplace – providing medical insurance to your employees is usually a smart move to create a workplace that’s healthier overall. In spite of everything, today, over 50% of Americans skip or delay medical care due to the associated costs. Providing medical insurance allows them to take one of the best care of their body and mind without having to fret about their funds.
  4. Streamlining your tax strategy – due to the SHOP exchange and the Health Care Tax Credit for Small Employers permits you to deduct among the costs related to providing medical insurance out of your taxable amount. 

When providing an insurance plan, make sure that it meets the standards outlined by the ACA and it becomes available to employees inside 90 days of hiring them.

Other Advantages To Look After the Health and Wellbeing of Your Employees

When it comes all the way down to taking care of your employees’ well-being, investing in medical insurance is barely one piece of the puzzle. When taking a holistic approach, you may consider also specializing in disease prevention and overall health, providing your employees with:

  • High-quality health and safety training
  • Gym membership
  • Rewards for cycling to work
  • Yoga and meditation classes
  • Mental health counseling 

Unsure what advantages your employees would value probably the most? Just ask them!



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