Small business health insurance in Texas is vital for employers. Given Texas’s dedication to promoting accessible healthcare, it becomes crucial for small businesses to grasp the intricacies of health insurance in the state. A small business is defined as a business that has two to fifty workers. This is considered a small business no matter how many hours they work.
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Importance of Small Business Health Insurance in Texas
The significance of health insurance in Texas is to protect your family and business from not just losing your good health, but also without health insurance, your family and business are one injury or illness away from financial struggles or even bankruptcy. Getting health insurance is literally life-saving when it comes to illnesses, and it will help you financially as well. As a business, it is better to offer employees health insurance though you are not required if you have less than 50 full-time employees, a full-time employee is an individual working more than 30 hours per week.
If you offer a strong health insurance package, you have a higher probability of acquiring more employees. Providing health insurance for your employees is actually in your benefits. Well let me tell you, first, it will reduce absenteeism meaning when a worker has health insurance they will stay on top of their health which means they will spend fewer days off for illnesses and injuries. Secondly, it boosts productivity. A study states that healthier workers are three times more productive than workers without poor health. Lastly, it attracts the best talent that’s available in the market.
Employees look for employer-sponsored healthcare, and 68% of employees look for this as one of the best perks to work for a company.
Understanding Health Insurance in Texas
There are multiple aspects that you should consider, plus regulations that aim to promote accessible and comprehensive coverage.
1. Preferred Provider Organization Plan (PPO)
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.
2. HMO Health Insurance
Health maintenance organization (HMO) features 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.
3. 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.
4. 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.
Benefits of Health Insurance in Texas
First, it can be a great way to attract and possess qualified talent in the labor market. Offering health benefits and insurance can put you at an advantage against other competitors. Second, healthy employees are more productive than those who have an illness. Finally, offering health insurance to your employees as a small business owner can give you a tax credit in Texas. There are some requirements to qualify for small business health insurance tax credit in Texas that we will discuss below.
Requirements for Health Insurance Tax Credit in Texas
To qualify for small business health insurance tax credit in Texas, you need to have a business that has 25 or less full-time or full time equivalent employees. In addition, your business must be contributing at least 50% towards paying for the costs of your employee’s premium while your business also buys a Small Business Health Options Program (SHOP) plan. Also, to qualify for the small business health insurance tax credit in Texas, your business must be paying your employees less than $50,000 a year for each worker.
If you meet all the requirements and are able to qualify for small business health insurance tax credit in Texas, then you can receive a federal tax credit for up to 50% for premiums you pay for your employees. 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 Texas for only two consecutive years.
Understanding Costs and Premiums
According to the Kaiser Family Foundation annual group, health insurance premiums packages per enrolled employee average around $7,911 a year for single coverage, which is roughly $659 monthly. It costs $22,463 a year for family coverage, which is approximately $1,872 a month. If you are having trouble figuring this out on your own as a small business owner, you should seek help from a professional counselor or administration.
Conclusion
In conclusion, you should take into consideration getting health insurance for your small business in Texas, offering health insurance mostly guarantees your employees an offer they most likely won’t refuse. In this article, we discussed some of the main things that you need to know about health insurance in Texas. A health insurance plan for your employees is very important for your business, and it’s something that will attract top-talent employees to you. Almost all the employees searching for a job right now look upon benefits for the company they are going to work under, and it will make your business more attractive to potential employees if your business offers 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 Texas.
