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Are you a small business owner?

Often times there is confusion when it comes to individual vs. employer sponsored health plans or “group plans.” Many small business owners are not aware that all it takes to start a group plan is one waged employee. That’s it!

So, why start an employer sponsored health plan?

Over the last several years, we have seen individual and family plans have more and more limitations placed on them in regards to networks, plan availability and types of coverages offered.

On the other hand, employer sponsored health plans provide an employer access to hundreds of options and plan designs.

Employers might be under the misconception that it costs more to start an employer sponsored health plan, but this is not true. Often times employer sponsored health plans are more affordable than individual and family plans.

Group plans also provide the employer and the employee tax benefits in regard to paying their premium.

On the employer side, an employer sponsored health plan allows you to save money on your FICA payroll taxes. On the employee side, an employer sponsored health plan allows you to pay for insurance pre-tax which means you will take home more money than if you were paying for your insurance on your own.

Insurance carriers often have requirements as far as what an employer must contribute to the employee premium. Often times the insurance carrier requires employers to pay 50% of the employee only portion of premium, however, our team at RSS can work with you to find the right plan design.

If you have any questions, please contact our office. One of our insurance advisors would love the opportunity to discuss employer sponsored health plan options with you.