Golden Retriever Puppy: Breed a Rescue Dog

Paying For Individual Health Plans For Employees

Many employers in California do not realize that paying for employee's individual health insurance policies presents many problems. There can be liability for the employer in doing so. Let's look at the implications and understand why providing Small Group health insurance to your California employees is important.

First, we need to understand the differences between Small Group health or employer sponsored health insurance and individual/family or private insurance. Small Group is quite different in a few key ways. First, it is governed by California law AB 1672. Among many provisions set forth in AB 1672, Small Group coverage is guaranteed issue to qualified small companies with 2-50 employees. This means that a person with a legitimate employer-employee relationship (can be full or part-time depending on group preference) cannot be declined due to health.

Individual/Family health insurance is quite different in this respect. Individuals must qualify based on health in a process called medical underwriting. They can be declined coverage have rates increased based on their health history or status. This difference in medical qualification is a big issue for small groups that pay for individual health insurance plans for their employees if the group is eligible or capable of providing group health. If an employee is declined coverage and/or suffers a major medical bill, he/she can go after the employer saying that the employer should have sponsored a qualified (guaranteed issue) group health plan. This assumes that the employer met the requirements under AB 1672 to offer such a plan. As an employer, you also do not want to know too much about an employee's health status. If you need to let the employee go, there can be issues in knowing that they were declined individual health insurance. Keep a good separation from this knowledge to avoid issues in hiring/firing.

Employers usually offer individual plans based on cost but the difference hardly justifies this exposure to liability. In California, the employer can pay as little as 50% of the employees health insurance premium and with options such as Employee Elect through Anthem Blue Cross, an employer can now offer a full range of plans to each employee with a fixed contribution (dollar amount or a percentage of a given plan).

The other main issue deals with the tax treatment of employers paying for employee's individual health plans. Officially, only a qualified group plan premium for employees can be deducted as a business expense. Paying for individual health plans generally cannot be deducted. Make sure to run your company's situation by a tax professional but this is a major drawback for paying for individual health plans.

In summary, with all the options, both from a plan and cost perspective, on the market, small group health insurance makes the most sense. Run your instant quote and please let us know how we can help investigate your Small Group health insurance options. It is important to avoid the liability of employees not qualifying for individual health plans due to health history and to make sure you take advantage of the tax benefits associated with paying for qualify Group health plans. ?

Dennis Jarvis is a licensed California group health insurance broker with extensive knowledge of the Small Group health market in California.

MORE ARTICLES:

A Cure for Obesity? Health Direct Blog Reveals a New Fiber Breakthrough that Helps to Make Weight Loss Easier
Obesity currently accounts for an estimated 400,000 deaths annually, costing us nearly $122.9 billion a year in health care-related expenses. In 2004, the US Centers for Disease Control ranked obesity as the number one health threat facing America today. Health Direct, a nationwide leader in liquid supplement products, has just posted a new article "A New Easier Way to Lose Weight With Fiber" to help combat this.

Are Fairy Tattoo Picture Designs Just For Women?
Some of the most popular designs for tattoos ? especially among girls and younger women ? are any fairy tattoo picture designs. These mythical creatures can have a wide range of different looks depending on who?s doing the designing. Some people associate fairies with magical lands or kingdoms. Some others think of creatures from some movies that they?ve seen. Fairies have long been associated with the hidden realms that are all around us but hidden away from us.

Wall Street Journal Declares Maureen Taylor "Nation's Foremost Historical Photo Detective"
Article features renowned expert who solves family photo mysteries for celebrities and genealogy enthusiasts.

Affordable Florida Health Insurance Plans Demanded
Recently, Florida residents along the center of the state got another dose of natural disaster; a horrible tornado blasted through, killed 19 and injured dozens more. Most of the victims of the storm say they just canceled insurance because of rising rates -- few will get their property back -- most will go bankrupt.

Employers Tackling Health Care Challenges with 21st Century Benefit Design; New Issue Brief from HealthFitness Charts New Course for Better Employee H
Gregg O. Lehman, PhD, past president of the National Business Coalition on Health, speaks about major challenges employers face....and the strategies they are using to combat ever-rising health costs through personal accountability.

New On-Board Aircraft Health Monitoring System Takes Flight on F-15: TRI/Austin, Inc. is Developing a New System That Can Monitor
In 2003, the Army awarded an SBIR Phase II contract for $729,888 to TRI/Austin to develop a diagnostic/prognostic system that could monitor aircraft and rotorcraft structural components in flight. Phase II focused on ruggedizing the system, optimizing performance, reducing power draw, refining the prognostic/diagnostic algorithms and building a system for test. The effort culminated in a successful flight test of the LAHMP system aboard the F-15.

Your First Set Of Golf Clubs Need To Fit Your Game
A basic set of golf clubs is all any golfer needs to start playing the game. A set of three woods, a collection of 3-9-irons, pitching wedge, sand wedge and a putter, are all that is required.

Calumet Photographic Chicago Presents Digital Days Photo Craze
Immerse yourself in everything digital during this weeklong event packed with prizes, sale specials, enlightening seminars, a mini-tradeshow and a huge vendor event at Calumet Photographic Chicago featuring quality brands from the best of the biz.

COEUM Software Announces MySQL Performance Health Check
Packaged offering for immediate performance & tuning services.

Shadows of the Andes; Ollantayambo; and Cesar Vallejo [Poems in English and Spanish]
1) Shadows of the Andes [or: Song to the Andes]I shall blend-in, into theMountains— Into the faintest thinShadowsof the mountains! Like the moss on moistenedStoneLike a leaf blown far fromHome..

Add Flair To Your Home: Use Decorative Picture Frames
Most people look at picture frames simply as a convenient way to hang pictures on the wall However, these frames have evolved over the years to be appreciated as an art all its own

Your Business Name...why It Is So Important
So, you have just set up a plan for your new business. One of the first things many small business owners do when starting is to find a company name. Very often they resort to cuteness, chance, or other irrelevant modes of decision making. Naming your business should not be left to fate or the likes of your best friend. It takes as much procedure and research as any other aspect of your business. People who don't realize this often make terrible mistakes when naming their business, putting themselves on the back foot right from the start. If you want to give your business a name that will survive, avoid some of these common mistakes and you'll be in a much stronger position.

How Window Washing Business Owners can Name-drop Their Way to a lot of Customers!
As everyone knows (or should know), getting customers is the most important ingredient necessary to building a successful window washing business. With that said, you should be looking at any and all opportunities to promote your business.

Natural Weight Losss: The Minor Changes That Can Have Huge Affects On Your Future Health
People always ask me " how it is that your grandfather a man over 65 can go to the gym 5 days a week , bike many miles every other day and still do many other physical sports without constant problems ?". Well I asked him.