Keeping up with changing healthcare regulations can be a difficult task for employers. As an employer, you’re probably wondering if you are required to provide health insurance for all your employees. The answer depends on how many full-time-equivalent (FTE) employees your company has. 

The Affordable Care Act (ACA) doesn’t mandate group health insurance for small businesses with less than 50 FTEs. Large companies with more than 50 FTE employees are still required to provide minimum essential coverage. Regardless of a company’s size, 2019 offers several health benefit options for employers to choose from.

Employer Health Insurance Requirements Explained

Under the ACA, all applicable large employers (ALEs) are mandated to provide health insurance coverage to at least 95% of full-time employees. Large employers typically have more than 50 FTE employees. In California, Colorado, New York, and Vermont, a large employer has more than 100 FTE employees. Small and mid-sized businesses may have to provide health benefits, depending on the number of full-time-equivalent employees they have. 

The number of full-time employees combined with the number of FTE employees will reveal the total number of FTE employees. 

• A full-time employee is considered an employee who works an average of 30 hours per week or 130 hours per month.

• Average part-time employee hours are calculated together to reveal how many FTE employees a company has.

Small businesses with under 50 employees won’t have to pay the penalty for not offering health insurance coverage. However, there are still many options for small and mid-sized businesses to participate in healthcare programs and provide competitive benefits.

Employer Health Insurance Options for 2019

Health insurance remains the top benefit employers can offer their employees. Even if your small business isn’t required to provide group health insurance, doing so can help your business grow. The following options can offer an affordable solution for every type of business.

Group Health Insurance – Traditionally, group health insurance policies were the standard choice for companies of all sizes. While this option may be more affordable for mid-sized and large companies, it’s usually too expensive for small businesses.

QSEHRA – The qualified small employer health reimbursement arrangement (QSEHRA) is a tax-free allowance that reimburses small businesses offering health insurance. Employees are free to choose their coverage and receive reimbursement from the employer’s contribution.

Integrated HRA – This option is a combination of group health coverage and a reimbursement benefit program. An integrated HRA doesn’t reimburse employees for individual coverage. Instead, this plan pays for the costs of deductibles and coinsurance that are part of the group policy. 

Small Business Health Insurance – For small businesses that want to offer more comprehensive health insurance benefits, an insurance specialist may be the best option. Custom-tailored plans can provide coverage specifically designed to meet the needs of your workforce. Find out more about small business health insurance here. 

Supplemental Coverage – Basic health coverage doesn’t cover employees in all medical situations. Supplemental coverage can cover the cost of copayments, deductibles, and any other gaps in your group policy. Different types of plans offer vision, dental, disability, critical illness, cancer, and accident insurance. Learn more about supplemental coverage here. 

Employee benefits play an increasingly significant role in how employees choose their workplaces. Health, dental, and vision policies are some of the most highly sought-after employee benefits on the market. One way businesses can remain competitive and attract a talented workforce is by providing a flexible benefits coverage plan.

Finding a Policy to Meet All Your Employees’ Needs

For health insurance coverage that meets all your employees’ needs, a one-size-fits-all approach won’t always work. Today’s workforce contains five generations working side-by-side. With a wide range of employee healthcare needs, flexible benefits options are becoming increasingly popular.

Traditional group coverage plans can work for large businesses but are impractical for small and mid-sized companies. Additionally, minimum participation requirements can make it even more challenging to administer group benefits. A personalized coverage program can provide all the protection your employees need without compromising your bottom line.

To learn more about small business health insurance options for 2019, contact the professionals at at (855)614-5057. Our licensed insurance experts are happy to answer any questions you have.