California small group health insurance plans are available to groups with a minimum of 2 and typically a maximum of 50 fulltime employees. A minimum of 2 employees or business owners must enroll to be eligible except in special situations. Health insurance carriers require 75% of all eligible employees to enroll. If an employee already has group health insurance through their spouse, or is on Medicare, that employee can be waived without affecting the group participation requirement.
Businesses who wish to only offer group health insurance coverage to a select group of employees may be eligible for the following carve out options:
- A management carve out plan (designed to insure managers only)
- A class carve out
- Salary vs. hourly carve out
- Location carve out programs
- Group carve out strategies (two employees with guarantee issue coverage)
At HRBC, we specialize in working with very small and closely held groups, often under 5 employees with the following business arrangements:
- Sole Proprietor with DE-6 Payroll
- Sole Proprietor without DE-6 Payroll
- Partnerships and LLPs
- Corporations and LLCs
- Employers with 1099 Contract Employees
- Employers with Seasonal Employees
The advantage of a having a small group health plan is that it is guaranteed issue to all members of the group regardless of their current health status. Also, employers and employees have the benefit of paying for their health insurance with pre-tax dollars to help reduce their amount of taxable income.