Small Group Health Plans

Small group health insurance can often be less expensive than individual/family plans with similar types of coverage, however, it is important to determine whether the business will qualify for group health plans before applying for coverage. Small group health plans are for eligible small businesses that have between one and 50 employees. The 50-employee threshold is what defines a small business versus a large business that has 51 employees or more.

Small group health insurance can be purchased at any time of the year, but there are some important rules that govern small group insurance which must be taken into consideration. A business owner can be on their own small group health plan provided that at least one other employee is also enrolled into the health plan. However, that employee must not be an owner, spouse or family member of an owner, or a seasonal worker that is not hired on a permanent basis.

There is also a requirement known as the 70 percent rule, which requires that 70 percent of the uninsured, full-time employees be enrolled into the group plan. The rule does not apply, however, during the small group open enrollment which runs from November 15 through December 15 each year.

This time period is beneficial to the business owner when they know they will not be able to meet the 70 percent requirement, but still want to offer group health to themselves and their employees.

Health Plans of Texas can obtain a variety of small group options depending on your group size and needs. If you are interested in seeing if small group health insurance is right for your business, give us a call and we review your eligibility.