Small businesses with 1 to 50 employees in Florida can get health coverage through the SHOP Marketplace at Healthcare.gov. Also, Florida Blue offers Florida small business health insurance and HMO plans that include doctor visits, preventative care services, prescription drug coverage, virtual care, wellness programs, digital tools, health coaching, and education, along with additional products like vision, dental, and life insurance.
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Importance of Florida Small Business Health Insurance
The significance of health insurance for small businesses in Florida is to protect your family and business from not just relinquishing your good health, but also without health insurance, your family and business are one injury or illness away from financial struggles or even bankruptcy.
When evaluating your Florida small business health insurance options, you should immediately compare the costs and benefits of the following options: a traditional Florida small business health insurance coverage and a defined contribution health plan that reimburses employees for individual health insurance coverage. The main health insurances small businesses should choose from are individual health insurance and group health insurance. Individual health insurance plans are plans purchased by individuals to cover themselves or their families. Anyone can apply for individual health insurance, though Small business owners who can’t offer group coverage due to minimum contribution or participation, typically purchase individual and family plans for themselves and their families.
Group Health Insurance Plans
On the other hand, group health insurance plans are a form of employer-sponsored health coverage meaning that the employer and employee costs are shared for the coverage. In some states, including Florida, self-employed personnel authorizes group health insurance plans. For self-employment health insurance plans you can purchase individual health insurance which has a very competitive insurance rate. A health insurance company can reject your application for an individual health insurance policy established on previous medical history. That means if you have cancer, diabetes, weight problems, or a host of different physical conditions then you will be denied coverage as a sole proprietorship. On the other hand, by applying for group health plans, two employers or more are eligible for these group health insurance plans.
The only downside is that it may be expensive in some cases.
Understanding Florida Small Business Health Insurance
There are multiple aspects that you should consider, plus regulations that aim to promote accessible and comprehensive coverage.
Preferred Provider Organization Plan (PPO)
Florida small business health insurance can involve a PPO plan. PPO is the preferred provider organization plan. This plan allows all employees to visit any doctor or hospital in the company’s list of providers. This ensures that their claim is paid at the highest level as well as getting cashless treatment which means you won’t be required to pay out of your pocket for the doctor.
HMO Health Insurance
Health maintenance organizations (HMO) feature a wide variety of contracted providers. This includes primary care physicians or PCP who will direct members to HMO specialists for depth care. Unfortunately, HMO is less flexible than PPO.
HSA-Qualified Health Insurance
HSA refers to a health savings plan. The PPO plans are designed for HSA, a health savings account. This means members can save pre-tax money and use it for medical expenses.
Short Term Health Insurance
You might want to consider short term health insurance because it’s ideal for solo small business owners in need of momentary health insurance. It’s also a good plan for business owners who can’t offer health insurance to their employees but need to recommend an affordable option to their employees that they can purchase on their own.
SHOP and its Benefits for Small Businesses
SHOP insurance is typically available to employers with 1 to 50 full-time comparable employees FTEs. If you have less than 25 employees, you may be entitled to the small business healthcare tax credit, if you buy SHOP insurance. If you are self-employed or have no employees you can get individual coverage through the health insurance marketplace. Benefits of SHOP insurance you can control the coverage you pay and the premiums you pay your employees. You may qualify for the small business healthcare tax credit which could be worth up to 50% of the costs you pay for your employee’s premiums and 35% for non-profit employers. This includes medical, dental, and vision health insurance for your employees’ health.
However, keep in mind that this tax credit is available for your small business in Florida for only two consecutive years. The tax credit is highest for companies with fewer than 10 employees who are paid an average of $27,000 or less. The smaller the business, the bigger the credit.
Tax Benefits
Florida is a tax-friendly state that does not impose an income tax on individuals and has a 6% sales tax. Corporations that do business in Florida are subject to a 5.5% income tax. However, LLCs, sole proprietorships, and S corporations are, however, exempt from paying state income tax.
Understanding Costs and Premiums
An average monthly premium of $651 for single coverage per covered worker in small firms. And an average monthly premium of $1,817 for family coverage per covered worker in small firms. Like most individual plans, the cost of a small group health insurance plan usually comes with a number of different payments, such as deductibles and premiums. A premium is a regular payment, usually made once a month, that policyholders must pay every month to remain enrolled in health insurance, and a deductible is a sum of money that a policyholder must pay out of pocket before his or her insurance will kick in and start contributing to medical costs.
In conclusion, you should take into consideration getting health insurance for your small business in Florida. Offering health insurance mostly guarantees your employees great health benefits. In this article, we discussed some of the main things that you need to know about Florida small business health insurance. If you have any concerns you should seek help from a professional counselor that will help you plan the health insurance plans for your small business in Florida.
