The Benefits of Applying for Group Health Insurance
Group health insurance is available to small business owners who qualify for this benefit. The basic qualifications include that you are a legitimate business entity (supported by your business filing documents or articles of incorporation), that you have at least two full-time employees (including yourself), and that you are willing to contribute the minimum employer percentage as defined by the insurance company who you choose to receive coverage from. If you meet these three qualifications, applying for group health insurance may be something that you want to look into, as there are a few great benefits that come from taking this step. This article will discuss some of the main benefits that you can receive from purchasing a group health insurance plan for your small business.
Guarantee Issue Coverage
One of the best benefits for you (and the reason why many small business owners try to get group health insurance even if they barely meet the qualifications) is the fact that you can get coverage based on a guarantee issue. So if you have a pre-existing condition and you’re currently paying too much or have been previously declined individual of family health insurance coverage, with a group medical plan, you will not be turned down. With the cost of health insurance coverage already ridiculously high, any way that you can save a little money on these costs is a good thing. For the other individual(s) within your business, you will also help them out and allow them to receive health insurance for themselves and their own family.
Tax Incentives for Business Health Insurance
There are tax incentives that you can receive both as a business owner and as an employee of your business. First, for you as an employee and for any other employees that you may have, you can pay for your monthly premiums with your “pre-tax” money. This means that the money you pay your premiums with will be tax-free. Second, for you as a business owner, you are able to deduct up to 100% of the money that you spend funding a group health insurance plan, so that you won’t have to pay taxes on that money either. Therefore, every cent that you use to fund your health insurance plan could potentially be tax-free.
Hire & Retain Better Employees
There is no doubt that the promise of a health insurance plan will allow you to bring in more qualified employees, who are willing to do what it takes to stay with your company. You will be able to hire employees who truly care about their job, instead of someone who feels that this job is “just another job”. They will value their position with your company due to the fact that you are offering them this opportunity that many small business owners don’t.
All in all, as a small business owner, purchasing a group health insurance plan may be more beneficial to you than you would have previously thought. It will not only allow you to get more affordable health insurance for yourself and your family, but for your small pool of employees as well.