Call or Email Us Today for More Information |  631.963.6020 |  info@nysmallgroupplans.com
Small Business Health Insurance Simplified. The best small business health insurance for every
 budget, all in one place..
 

The new definition of a small business health insurance group starting in 2016.

Starting January 1, 2016 the definition of a small business health insurance plan will be changing from 1 - 50 full time employees to 1 - 100 full time equivalent employees.   All non grandfathered groups with 51 to 100 employees in New York will be reclassified as a small group and will be offered a small business plan from the insurance companies.  

How will this impact these insurance plans? 
Businesses will now have to count there part time employees towards the total equivalent full time employee count.  So a business with 80 full time employees and 50 part time employees will now be considered a group of 105 employees for insurance purposes.  A group of over 100 will still be considered a large group and rated as such.  Conversely a business with only 80 full time employees will be considered a small business and will be offered a small business plan.   The groups that will be rerated a small business will have serious changes to there health insurance plan.  Many of the small business health insurance plans will use a much smaller network of providers,  In New York these companies are EmblemHealth and Empire Blue Cross.  So if you are currently a business with a large group plan with Emblemhealth or Empire Blue Cross and will be re rated as a small group in 2016 you will definitely want to consider changing health insurance carriers.  Some insurance carriers may even pull out of the market altogether.  On the positive side if you have a group that has older employees or poor employee participation as a large group and the group is now rerated as a small group,  the business will probably benefit as being rated as a small group and have better rates and choices in the small business market.  Businesses with 50 or more full time equivalent employees will have to offer affordable health insurance plans to there employees or face large fines from the government.  The system is set up as to make it more affordable to the businesses to offer affordable health insurance coverage to there employees then to pay the fines in almost all cases.   As long as a business offers their employees a bronze level plan that wont cost the individual employee any more then 9.5% of the employees salary, the business is safe from paying fines.  Bronze plans can start in the low $300 range per month in NY.  So even a minimum wage employee working 30 hours per week can pay $100 per month towards the cost of the coverage and the business would pay the balance.   In many instances the employee would rather go on Medicaid for free and the business would be off the hook for that employee.  Any full time employee who earns less than $16,000 per year can go on a Medicaid plan in NY.  Employees who earn more than $16,000 can afford to pay $127 per month towards the cost of a bronze plan and the business would have to pay the balance.  So a business purchasing the least expensive compliant plan may only have to pay $200 per month for their lowest income employees,  which is about the same cost as the penalty for not offering the insurance coverage.  A business will probably find that their lowest income employees would rather go without insurance then pay the $127 per month to have a Bronze plan.  So as long as the employee is offered the coverage and then declines it ,  the business is off the hook for the fine.

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Custom NY/NJ Quotes
Life Insurance
Instant quotes form the top rated Companies. Compare Now.
Testimonials
Serving the insurance needs of small businesses and individuals since 1998.
Join Our Newsletter
Stay in touch with the latest events, news and offers that we have.
Insurafy for California small
business health Insurance







Get a Quote
From Our Blog From Our Customers
Read More Read More
Stay In Touch With Us Helpful Site Links Read the News
Sign up now to receive new and updates Stay up-to-date with the latest industry, community and agency news through our newscenter. We also provide handy hints on how to save on your insurance.

Read More
We have the expertise to find you the right coverage at the right price 
© All rights reserved.
Powered by Insurance Website Builder