Our public accounting firm is focused on Small Business Owners and Individuals and many times new business owners ask us about health insurance. Most of us live in the Bay Area and prefer “Kaiser” as a health care provider and therefore I gathered some basic information about Kaiser health care plans for small business owners.
Kaiser offers many health care plans but one that suits the need of small business owners is called “GROUP POLICY”. You can buy this group policy in two flavors. One with the annual deductible and one with no annual deductible.
Plan with annual deductibles cost about $250-$300 less than the non-deductible plans. Both policies cover doctor's visits and other services offered by Kaiser. Both plans have minimum out of pocket doctor’s visit cost but the key difference is that with an annual deductible plan you have to pay the minimum deductible ($1500) before your major benefits kick in. For example, a daily rate for the hospital room maybe $500/night and you will have to pay for 3 nights before your insurance pays. However, with non-deductible plans you won’t be required to pay for these three days.
So, if you and your employees are fairly healthy and won’t be needing any major services than you can opt for deductible plan and save a significant amount on a monthly basis.
How about Spouse and kids?
Yes, of course, your employees along with officers/owners of the company can also enroll their dependents including kids and spouses. Most policies don’t allow you to include your parents.
What are the requirements for this kind of policy?
- You must have a business in good standing.
- You must have two or more people enrolling in the policy.
- More than 50% of all eligible persons should have insurance.
Can I get a tax deduction for the health policy?
You can read my post about health care policy deduction for more details.
How much does the policy cost?
I found the group policy of very good value. Rate varies by age but here is a simple example. Females less than 30 years old can get this kind of policy for about $300. Not Bad?
How can I enroll in group policy?
Simply call Kaiser and ask for enrolling in group policy.