Learn This Guide to Small Business Health Insurance Requirements

Health insurance is one of the most difficult issues for any HR department or small business. There are numerous unknowns regarding the type of plan to provide, how much it will cost, how to administer the plan, and whether you are even obligated to provide a plan.

Small business health insurance

It doesn’t help that the laws and regulations have changed so dramatically in recent years, from President Barack Obama’s introduction of the Affordable Care Legislation (ACA) in 2010 to the current administration’s attempts to dismantle the act to the impact of the forthcoming election on health insurance coverage.

This is a lot to take in for small firms attempting to stay on the right side of the law while managing costs and keeping staff happy and healthy. That is why we developed this handbook, which covers small business healthcare regulations as well as pertinent health insurance rules.

1. What are the health insurance requirements for small business owners?

Some firms must provide health insurance by law, while others are exempt. We’ll go over these exemptions in more detail later, but there are some basic criteria when it comes to providing health insurance to your employees.

To begin, every health insurance plan you offer must fulfill the ACA’s benefit, coverage, and cost standards. You must also provide health insurance to all qualified employees within the first 90 days of their employment.


2. Does the ACA require small businesses to provide health insurance?

Small firms with less than 50 full-time employees (or the equivalent of part-time workers) are exempt from providing health insurance under the ACA, also known as Obamacare. Because most small enterprises have less than 50 employees, they are excluded. If you have more than 50 full-time employees, you must provide health insurance by law.

The caveat here is that laws do change, particularly as political governments change, so it’s critical to have systems in place to stay up to date on the current rules. This could entail subscribing to industry magazines and newsletters, speaking with legal experts, or even reading your HR software vendor’s blogs.