Small Business Health Insurance Requirements
Starting a small group plan can seem difficult, but there are many advantages once it is in place. Consulting with a health insurance broker can help you complete the enrollment and have coverage starting even as soon as next month. There are 4 main small business health insurance requirements that need to be complete to establish a group.
The Nevada Division of Insurance requires that there be 2 or more non-related employees on the group plan. Although, many carriers may ask for extensive payroll information for such a small group. The reason Reno health insurance carriers have this requirement is to ensure that the group is a legitimate business and not forming purely for group benefit advantages. Those advantages include sooner effective dates, more carrier choices, and lower premium amounts.
Hours Worked and Participation
These employees also need to be full time. This means they will have to work 30 or more hours a week. Part-time employees do not count towards your total employee number and are generally not eligible for benefits. Carriers also require 50 to 75 percent of full-time employees to enroll as well. This is a requirement so the insurance companies know they are not only covering employees that will use the plan extensively.
The final main hurdle to starting a group plan is providing a Quarterly Wage and Contribution Report. This is a payroll report that lists all the employees that are with the company. If a group is large enough, some insurance companies will not require this report. This can be one of the more difficult requirements for groups that have just formed or for large companies that record payroll information electronically.
Please call our office at (775) 828-1216 if you have any questions or would like to start a health insurance small business plan. Our office can generate group health insurance quotes for every major carrier the same day that we receive a census.