Under California law, employers with two or more full-time employees, including the owner are guaranteed group coverage should they choose to purchase it, regardless of the health status of the employees.
To qualify, employers need only have been in busi-ness longer than two months, comply with insurer requirements regarding the em-ployer’s contribution and employee participation, offer coverage to all eligible full-time employees, have not committed fraud against the insurer and continue to pay their premiums.
Group coverage can be defined as a single policy, which is issued to a group. Group plans can include eligibility for the dependents of employees, as well. With group plans the insurer’s rate is based on the risk factors of the entire group, using general in-formation on the members of that group, such as gender and age. Eligibility cannot be denied based on an individual’s health problems or a pre-existing condition.
Currently, there is no California law that requires employers to offer health insurance coverage to their employees or their dependents. However, if an employer chooses to offer group coverage, they must do so to all employees who work 30 hours a week or more. Employers do not have to offer coverage to part-time employees. However, if they choose to do so, then all employees who work 20 to 29 hours per week must be of-fered the coverage. Most insurance plans require employers to cover at least half of the insurance premium for covered employees. On the other hand, employers are under no obligation to pay for the premiums of dependents.
Employers who offer health insurance are in a better position to recruit and retain good employees. What’s more, it usually reduces absenteeism and risks associated with poor health because employees are more likely to seek health care, if they have coverage.
If you have questions concerning whether to offer insurance, contact a knowledgeable insurance agent.
Gregg L. Goodman, LUTCF is the CEO of the Gregg L. Goodman Insurance Agency, Inc. He is an agent for Farmers Insurance and provides life, health, homeowners and auto insurance, as well as commercial insurance programs.
For more information, please call 661-254-6739.