The small group Special Enrollment Period is a once-a-year window when it’s easier for small businesses to offer group health insurance to employees. That’s because during this one-month period:
>Your business does not have to contribute to the premiums; and
>Only one employee needs to enroll to establish your group plan.
This means companies in the small group market (2-50 employees) can offer health coverage without spending any money.
All contributions paid by the employer are a tax deduction for the business.
It also means your employees can get access to group health insurance. This allows them to use pre-tax payroll deductions to pay for premiums (as long as you have a cafeteria plan set up) and gives access to the larger doctor and hospital networks normally associated with group coverage.
Employees pay for everything using their own money, but they save a ton because they aren’t paying taxes on their contributions.
This contrasts with the rest of the year when group health insurance plans come with additional requirements. Usually, there are:
>Minimum contribution rules, which require employers to contribute a certain amount to the cost of the plan; and/or
>Minimum participation rules, which require a certain percentage of employees to enroll in the health insurance plan.
For example, in some states, health insurers can decline you for group coverage if fewer than 70% of your employees elect to have the coverage. (If an employee has other health coverage, like through a spouse’s plan, they’re not included in this calculation.)
That’s why the Affordable Care Act created the small group Special Enrollment Period to allow you to skirt around these requirements.
Enrollment is November 15th – December 15th for a January 1, 2023 effective date.
Learn more about this through our preferred partner, Angie Adams or reach out to American Wealth Strategist today.
Angie Adams – American Wealth Strategist Partner
Licensed in the states of Texas, Arkansas, Tennessee, Oklahoma, and Indiana