Small Business Health Insurance in New York (Might be More Affordable)
Published on June 13, 2018
Updated August 6, 2019
Small group health insurance is coverage that is available to groups of 2 to 50 people. If you own a small business and have at least one employee who wants to join a group health plan—then you are already on your way to qualifying for small business health insurance in New York.
Why you might want small business health insurance in New York
If you don’t know yet, small group coverage is often much cheaper per individual, making it an affordable option compared to individual health insurance plans. Some of the characteristics that make this coverage more affordable include:
- Pre-tax benefits: For employees, their share of the premium is taken out of pre-tax dollars, which makes their taxable income lower, and can add up to a significant amount of savings after some time.
- Small business health care tax credit: Employers can qualify for a tax credit that will help cover their share of employees’ premium costs. The credit is offered on a sliding scale, so the smaller your group, the more you’ll probably benefits from the tax credit.
- Risk pool benefits: One of the fundamental ideas of insurance is that many people’s monthly premiums will cover the cost of one person’s costly medical emergency. So the more people paying premiums in a group (the larger the pool), the less risk there is for insurance companies, making it possible to lower prices.
- Shared cost of premiums: Employers usually contribute 50 percent or more to their employees’ premiums, making monthly costs less for those enrolled in a group.
If lower prices aren’t enough to convince you that small business health insurance in New York is a great coverage option, you may be interested to hear that offering group coverage could have a significant effect on your businesses’ performance. By offering small business health insurance in New York, you may have a better chance at hiring and retaining quality employees. Additionally, the preventative benefits of health insurance plans could decrease sick days and leave you with healthy, productive employees.
Small business health insurance in New York (plan types)
Choosing the right small business health insurance in New York can seem intimidating—but luckily, eHealth has a page dedicated entirely to New York small business health insurance, which you can visit when you want to start looking for plans in your area.
To get a quick idea of what small group plans look like, here is an overview of some popular plan types:
- Exclusive Provider Organization (EPO) plans: EPO plans mostly restrict enrollees to staying in-network, and they require you to get referrals from a primary care provider (PCP). EPOs usually come at a lower price than other plan types with less restrictions and more flexibility.
- Preferred Prover Organizations (PPO) plans: PPOs are a common choice for individual health insurance plans, so you may have heard of this type of flexible coverage. While you’re encouraged to use preferred, in-network providers, you’ll also have flexibility to go out-of-network and still get coverage form your insurance company. These plans often cost a little more than other options, and they do not require enrollees to choose a PCP for referrals.
- Health Maintenance Organization (HMO) plans: HMOs are also a very common plan type with individuals—they require a PCP for all referrals to specialists, and they might not offer any coverage for out-of-network services. They do often cost less than PPO plans though, in terms of monthly premiums.
- Point of Service (POS) plans: These plans were found to be the most popular choice for small groups in 2018, with 47 percent of survey respondents saying they chose this PPO/HMO hybrid for their group coverage. You will have flexibility with going out of coverage, and will usually need a PCP for referrals to specialists.
Keep in mind when choosing small business health insurance in New York, you can usually offer several different plan types to your employees to choose from. Different plans work for different health care needs.
Each plan has its own terms and limitations, so be sure to check the official plan documents to understand how that specific plan works. This article is only for general education.
How to get small business health insurance in New York
If you’ve decided that small group health insurance is right for you, then go ahead and visit our New York small business page to start getting quotes.
If you want to check to see if you qualify for group coverage, you can read more about what you need in order to get a small group health insurance plan here.
Group and employee definitions vary by insurance company and state, so be sure to check with a licensed insurance agent to find out the details for your specific situation.
This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.