A significant advantage of Small Group health plans is that anyone wanting coverage, whether an employee and their dependents, business owner, or partner, can never be declined because of health. California State law (AB 1672) requires small group health insurers to offer guaranteed issue coverage for all small groups with 2 to 50 employees. This law allows small employers to offer rich health benefits, comparable to their larger competitors, for employees and their families.

Premium rates for small groups will vary by insurer and the type of plan offered. Both HMO and PPO plans are available from a number of insurance companies offering small group coverage in California. While no law sets premium rates, AB 1672 stipulates that a rating of no more than 10% of the carrier’s base rate can be applied because of health risk, while a credit of up to 10% can be applied for groups of a certain size or those displaying a more favorable health history.

 

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Certain business requirements have to be met to qualify as a small group. The program is available for all forms of businesses, including sole proprietorships and partnerships. A number of companies offer small group health plans in California.

Providing group health coverage is often necessary to hire and retain key employees, especially in this competitive employment climate. We can structure a plan that meets your small business needs, whether you are a two person business, a 50 employee organization, or anything in between. Optional benefits such as dental, vision, life, and disability insurance are also available for you and your employees. Please call today to learn how you can offer these big business benefits for your small business.