The state of Texas operates mainly on small firms, which then employs millions of Texans. Although the pool of prospective employees is far and wide, many businesses compete to take on the most innovative and productive people, which is why they find new and better means to curate their employee benefits packages.
One of the most attractive benefits are health insurance plans, which arguably one of the best things employers can offer. By offering competitive health insurance, businesses become desirable for many people to work, especially competent and qualified individuals.
To fully understand the significance of health insurance in Texas, particularly group health insurance, here is a quick guide for you.
How does small business health insurance in Texas work?
Seeing that Texas operates under state policies, it’s vital to understand that group health insurance is regulated by Texas, which employers need to consider.
1 – The employer’s coverage obligations
Texas, like most states, does not require businesses to have fewer than 50 employees to gain access to group health insurance. While many of these firms provide health insurance, business owners are never obligated to offer such benefits. There are no penalties involved, but should employers offer group health insurance, they are mandated to do so to all of their full-time employees.
2 – Eligibility for companies
While health status plays an integral role in traditional health insurance policies, individual employees will be given group coverage by their employer regardless of current health status. Every type of business falls under the Employer Shared Responsibility Payment, but as mentioned previously, small businesses are not required to offer health insurance.
3 – Employee considerations
Group health insurance coverage extends to employees who render 30 or more hours every week, and coverage is also accessible to their dependents. Companies are then required to pay for share on coverage, which begins upon hiring.
What are the benefits of providing group health insurance in Texas?
Aside from the mandated benefits of small group health insurance, there are also some advantages in offering small group health insurance particularly to employees in Texas, such as:
- Texas state incentives: These incentives allow the annual price increases on insurance to cap at 15%, helpful in the payment of small group insurance. Additionally, it helps in negotiating for lower insurance prices and keeps insurers from ending insurance coverage without a valid reason.
- Cost-efficient premiums: Group insurance typically is more cost-efficient than individual insurance plans and is more affordable for each employee.
- Texas’ prime location: As the regional headquarters for the ACA coalitions, Dallas extends quality coverage and healthcare to as many individuals as possible. Due to this, Texas has become a prime location on health coverage, making resources readily available for employers who wish to offer group health insurance.
The Bottom Line
The Affordable Care Act dictates that group health insurance must be extended to all employees. It seeks to provide healthcare to employees, particularly those that fall under full-time work. If you’re an employer exploring the benefits of providing health insurance, it’s important to understand how it works, including coverage options and eligibility.
If you wish to learn more about group health insurance, Abbot Benefits will be happy to assist. As a group health insurance broker in Houston, we’ve committed ourselves to help Texan businesses take care of their employees. We specialize in medical, life, dental, and vision. Reach out to us today for more information!
