Companies that Qualify for New Jersey Group Health Insurance
Businesses come in every shape and size in NJ, so there is not one plan that fits every model. Fortunately, small businesses do not have to pay the same rates as a large company because of the variety of available plans. Companies that have between two and 50 employees qualify as a small business.
It is important to note though that the actual total of employees is not what small business health coverage goes by in New Jersey. In fact, New Jersey group health insurance can only be used for companies that have between two and 50 employees that are eligible for health care. This means that they must be full time and not seasonal or contract employees. Usually full time applies for those working over 30 hours in a given week.
A small business in New Jersey can fall into a few loopholes. For example, if a company has only two employees and they are husband and wife, they would not be eligible for group health coverage. It is true that they meet the full time and employee count requirement, but they could not claim each other as dependants. Therefore, it is possible that group health insurance in New Jersey will not be the most affordable option for them because they would need two full policies.
Benefits of New Jersey Small Business Health Insurance
No matter the economic climate, companies in New Jersey are always trying to be competitive to attract the best employees. When companies have a solid foundation of employees they will have better productivity and save money over all. Part of attracting the best employees is having good benefits. New Jersey group health insurance is just one way that employers can set themselves apart.
Potential employees look at more than just salary when they see where they want to work. There is location, opportunities of advancement and of course, health benefits to consider. Yes, people need to work, but that does not mean that they will settle for the first job offer. Large companies can attract the top candidates with all the above, but small businesses can compete by leveling the medical insurance playing field.
Types of New Jersey Small Business Health Insurance
One of the most common types of New Jersey small business health insurance is a Health Managed Organization (HMO) option. This means that employees have to stay within a specified network if they want to receive full benefits. An HMO plan is the most restrictive of the managed health care plans. Even if an employee requires emergency medical attention it must be within the network otherwise the plan will not cover the care. In addition, another stipulation is employees must have a primary care physician that is in the network.
HMOs do not work with like other managed care in NJ that offers coinsurance. That is when the provider pays for part of the coverage, usually in the form of a deductible. This plan only works if employees do not require a lot of flexibility with their plan.
A second type of managed care for New Jersey small business health insurance is Preferred Provider Organizations (PPO). This New Jersey group health insurance option lets employees use their personal physician as their preferred provider and not has to worry if he or she is in the network. In addition, if emergency care is required outside of the network an employees benefits can be used, although the benefits will be reduced.
This type of New Jersey group health insurance uses coinsurance so employees have to pay a deductible. The co-pay is generally around the same as an HMO, but the deductible is how much you must pay before the provider kicks in. To help keep the premium rate low, companies may want to consider a higher deductible.
The third type of managed care is Point-of-Service (POS). This type of New Jersey small business health insurance is more flexible for employees than an HMO or PPO plan. When an employee needs patient care, they can go outside of the network at the referral of their primary care physician and receive full benefits. However, if the employee does not have a referral then their benefits will be reduced.
Similar to the NJ PPO plan, a New Jersey group health plan that uses a POS uses copayments and coinsurance. To help curb the cost of this more costly plan, employees may want to choose a higher deductible so their premium rate will be lower. This type of New Jersey small business health insurance plan is great for employees who want the most flexibility.
If managed care is not an option, then there are discounted rates for individual plans for companies. Individual plans though are more difficult for an employee to qualify for. They are based a lot on medical history. It may not allow their dependants to be added to the plan as well. One of the best benefits of New Jersey group health insurance is that it can automatically be extended to spouses and dependants regardless of health history.
One final option to consider is a Health Savings Account (HSA). This gives employees full control of the plan. A portion of their income is taken and placed into an account that will pay for routine health services like checkups and physicals. In most cases, the employer itself will also contribute a portion, some times a matching portion, to help the account be more of a benefit.
There are plenty of New Jersey small business health insurance plans to consider and as long as companies have their employees in mind, there will not be a problem to get the required employees on board. Having health insurance is important, so companies should strongly consider finding the best plans for New Jersey group health insurance for their workers.