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Why Contracting Businesses Should Offer Health Benefits

All Contracting Businesses Should Offer Health Benefits.

All Contracting Businesses Should Offer Health Benefits.

If the HR person for your contracting business would like to recruit the best of the best, they must consider offering quality health benefits.  Many potential employees, who are worthy of working for your company, will most likely be receiving multiple job offers.  Some of those vying for your opportunity might make their decision based on salary or location, but time and time again, it is those companies which offer comprehensive health care which most often recruit the best workers.

While Employer health insurance requirements vary state to state, typically, group health care plans purchased by the employer have lower premiums due to the volume at which coverage plans are purchased.  Additionally, a majority of workers are healthy and few statistically ever file a claim for expensive health care.  Traditionally, the employer pays 85% of the premiums while the employee covers the rest.

The idea of paying up to 85% of the insurance premium initially seems steep.  The cost can add up if you have a large number of employees but making a decision like this should be thought of as an investment because it makes employees feel happy and secure.  By offering health care to your employees, your contracting business will thrive by attracting more qualified workers as well as retain them after the hiring process is done.  It will also save you money in the long run by minimizing the cost of training new hires.  Even if your contracting corporation happens to be a small one, offering health benefits can be the make or break for each new employee you take on.

Whether you are just starting out in your business, or have been running for decades, it might be time to consider a new health care plan for your employees.  Providing coverage will increase morale and productivity in the short term and profits in the long run.  If you are unsure of where to start, contact us today with any questions you may have.

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Is your Former Employee Entitled to Cobra Coverage?

What are the requirements for Cobra Coverage?

What are the requirements for Cobra Coverage?

What is COBRA?

Before delving into whether or not your former employee is entitled to cobra coverage or not, lets first lay down the foundation of what Cobra is and how it works.  COBRA is an acronym, short for the Consolidated Omnibus Budget Reconciliation Act and was designed to protect former employees from a lapse of insurance coverage.  If an employee is capable of receiving COBRA benefits, he, along with any family members, will continue to receive Insurance through their former employer’s health insurance plan.  Although coverage will now cost higher, due to the fact that they will be paying the entire premium rather than a portion, the cost is generally still less than if they had to purchase an individual plan rather than one at a group rate.

 

Does Every Former Employee Receive Cobra Coverage?

As a business owner, it’s important to understand the laws regarding Cobra Coverage.  Not everyone who loses their job is entitled to cobra.  Only employers who have 20 or more employees and a group health care program must offer it.  As a general rule the employee may receive benefits even if he chooses to leave the company on his own.  Only if the employee has committed gross misconduct may he fail to receive benefits.  The duration of time through which the former employee may receive benefits is anywhere from 18-36 months.  Lastly, if the employee was not a participant of the group coverage plan before quitting or getting fired, he will not be eligible.

 

Violations of Cobra Coverage Laws

The most common violation to cobra law is failure to notify your former employee about his or her right to Cobra Coverage.  Notice is required before you terminate an employee.  Usually this notice of rights is explained within 90 days of the coverage occurring and if changes occur in the plan, the employee would also need to be contacted.  Additionally, within 30 days of terminating your employees, it’s your responsibility to explain Cobra rights to them.  If the employee has a spouse or ex-spouse, they too need to be notified.  This must occur within 14 days of the termination notification.

Whether you have just let someone go, or an employee has given his notice, it is your duty as a business owner to follow the proper laws and procedures.  If you have any further questions regarding Cobra Coverage contact one of our insurance professionals and they will be happy to speak with you.

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Obamacare to Benefit New Contractor Businesses

Obamacare To Help New Contractors.

Obamacare To Help New Contractors.

The Affordable Care Act may give new business owners a chance at starting fresh.  In previous years, leaving your current 9 to 5 job may have been too difficult due to the high cost of procuring health care on your own.  While it may be true that individuals have faced the highest premiums in years, there might be light at the end of the tunnel.  Due to changes in legislation, NY officials have announced dramatically more affordable health insurance options.

In an article by NY Times it was explained that new rates which were approved for 2014 are 50% lower on average than previous rates available.  Starting this fall, those who paid closed to $1000 dollars a month can expect to be pay closer to $300, which opens up a whole new pool of funds for you to start that new contracting business you always thought about.  If you apply for federal subsidiaries, your costs could even be lower.  The drops in pricing are arguably attributed to online purchasing exchanges which the laws have created.  Additionally, the influx of younger adults, who originally could not afford health care, are now entering the market which, due to supply and demand, will lower rates.  The science behind this is simple – younger people previously dropped out of the insurance market as prices rose which left insurers with less healthy adults which pushed prices higher due to risk.

This is big news for anyone looking to start a new contracting business.  The exchanges will make it much easier for entrepreneurs to shop for various plans and receive small business tax credits under the ACA.  Whether you are looking to start off big, or launch a large scale contracting corp, the health care reform has definitely made an impact on the marketplace.