How many employees do you need for a group plan?

Posted by Emily Kubis on Wed, Jul 11, 2018 @ 11:07

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Planning to offer group benefits?

Are you a small business owner considering your options for group health insurance coverage? While employers with fewer than 50 full-time employees are not required to offer health insurance to employees, many still choose to do so. Offering group coverage is a great way to improve recruitment and retention, and can sometime be the best option for very small groups, as opposed to having employees obtain individual coverage.

But how many employees do you need to be considered a group?

In general, most carriers will want at least two subscribers to the health plan, so this would be the minimum number of employees typically required.

At least one of these subscribers will need to receive a W-2, ensuring they are actually an employee of the business. In some cases, carriers may want job descriptions of any workers receiving the 1099 form as an independent contractor, to ensure they are actually a part of the team.

Carriers will typically outline minimum participation requirements for eligibility in the plan contracts, so it’s important to make sure your business meets these in order to remain compliant.

Bernard Health has over a decade of experience working with groups of all sizes. Are you wondering with a group plan is right for your organization? Schedule a free consultation with one of our advisors by clicking below.

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Topics: group benefits, group plan, offer health insurance, broker, small group market

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employer healthcare freedom
employer healthcare freedom