Small Groups Can Enroll in Small Business Health Insurance in Arizona
Published on June 05, 2018
Updated August 30, 2019
In a 2018 profile, the U.S. Small Business Administration reported that Arizona had 1 million citizens employed by small businesses, which made up 44.5% of the private workforce. Although these numbers account for businesses larger than what is considered a small business for health insurance purposes, it is still a significant amount. And in fact, the same profile on Arizona small businesses found that in 2015, small businesses created 39,570 jobs, and firms employing fewer than 20 employees experienced the largest gains, adding an additional 22,287 jobs to the small business industry.
So what does this mean for small business health insurance in Arizona?
It means that many people are probably relying on getting group health insurance through their small business employer, making this type of insurance very important in Arizona.
Who can get small business health insurance in Arizona?
According to HealthCoverageGuide.org, health insurance companies recognize a “small employer” (or small business) as a business with 2-50 full-time employees. This might surprise some people, because it means a sole-proprietorship with just one other employee, or a partnership with no employees can benefit from what small business health insurance in Arizona has to offer.Whether you have 1 full-time equivalent employee, or 50, there are plenty of ways that small business health insurance in Arizona benefits everyone covered under you group health plan.
Benefits of being in a small group health insurance plan
There are benefits to Arizona small group plans for both employers and employees. Some of these include:
- Cost sharing—employees benefit from sharing the cost of their insurance premiums with the employer.
- Tax benefits—for an employee, being part of a group plan means paying for insurance with pre-tax dollars, which can end up saving a significant amount by the end of the year. For employers, there is a tax credit you may qualify for, which helps offset the cost of paying for employees’ premiums.
- Lower premiums—it’s a well-known fact, but an eHealth report published in 2019 proves it once again—group health insurance plans typically cost less per individual (which is probably due in part to a larger risk pool for the insurance companies)
- Healthy employees—if employers want productive workers who require less sick days, offering small group health insurance with access to preventative care might be a good place to start.
- Retaining employees—good workers will choose the job with the best benefits. If you want to hire and keep quality employees, a good way to do so is offering them health benefits.
What types of plans are there for small business health insurance in Arizona?
Similar to individual and family health insurance, small group health coverage has different plan types to choose from. Some of the most popular types include:
- POS—in a recent eHealth study, POS (Point of Service) plans proved to be the most popular group plan to purchase in 2018, with a 47% lead. These plans usually have enrollees choose a primary care doctor, but they often provide access to a broad range of in-network health-care providers.
- EPO—with the Exclusive Provider Organization plan, you will have access to all providers (including specialists) without a referral, but there is little flexibility for going out-of-network.
- PPO—Preferred Provider Organization plans allow you to see any health care provider in-network without a specialist, and sometimes will even pay some amount for out-of-network care.
- HMO—usually coming with a cheaper premium, the Health Maintenance Organizations plans require referrals from primary care doctors for any kind of specialist to be seen, and they are usually fairly strict about only covering in-network costs.
There are plenty of more options to choose from, which you will see while shopping, and eHealth will always provide you with plan information while shopping for small group health insurance. There are also metal levels for different plans, which you can read more about here.
Shopping for small business health insurance in Arizona
If you’re looking to find group coverage in the state of Arizona, look no further than eHealth. Visit our small business page to find plans in your area, and get free quotes on coverage from several different providers.
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.