FL Small Business Health Insurance Plans
Florida Small Business Health Insurance Plans 2021. The following is an overview of the rules that govern small group health insurance plans in the State of Florida.
The information that is discussed below includes the laws that have been mandated by the Affordable Care Act (ACA or "Obamacare"), as well as the laws that are required by Florida State government.
If you own and operate a FL small business and you already offer small group health insurance or you're thinking about offering small group health insurance - this guide can help you better understand the regulations, requirements and available Florida small business health insurance plans available.
Learn how to get Florida small business health insurance plans for 1 to 50 employees. The best small business health insurance providers in FL offer affordable rates, flexible coverage options and access to a large network of medical providers.
Below are some answers to commonly asked FL small business health insurance plan questions:
- How Much Does Florida Small Business Health Insurance Cost?
- What Are The Small Business Health Insurance Regulations In Florida?
- Does Florida Participate In The Affordable Care Act?
- What Are The Affordable Care Act Requirements For Florida Small Businesses?
- How Are FL Health Insurance Premiums Are Determined?
- What Types Of Health Insurance Plans Are Available For Florida Small Businesses?
How Much Does Florida Small Business Health Insurance Cost?
The average price of a standard Florida small business health insurance policy ranges from around $583 to over $1706 per employee per month based on; single or family, location, coverages offered, deductibles and more.
What Are The Small Business Health Insurance Regulations In Florida?
In Florida, state laws require health insurance companies to sell all small businesses group health insurance policies. Additionally, the same small group health insurance policies that are sold to other small businesses that every other eligible Florida-based small business has access to.
In order to be eligible, a small business must have a minimum of 2 but no more than 50 employees. However, health insurance companies are legally allowed to require minimum participation requirements if they choose to do so.
As per this stipulation, a specific percentage of group members have to purchase the health insurance policy that is offered, otherwise the Florida small business health insurance plans can be rescinded.
As long as a small business meets the above-mentioned requirements, Florida health insurance companies are required to sell the business a policy; however, the price of the policy is regulated on a minimal basis.
Certain factors, such as the age, gender, and family size of the group, can be used to determine the premium rates, and depending on those factors, those rates can be higher; however, the health status of the group cannot be used to increase the premiums.
Moreover, to protect groups that are insured under a small business health insurance policy, Florida health insurance regulations do not allow health insurance companies to cancel policies when and if one of the insured individuals becomes ill.
According to Florida Office of Financial Regulation, the federal government passed health care insurance reform which included the Patient Protection and Affordable Care Act (PPACA) signed into law on March 23, and the Health Care and Education Reconciliation Act of 2010 signed into law on March 30. Together, these bills are referred to as the Affordable Care Act (ACA).
Does Florida Participate In The Affordable Care Act?
In 2010, the Affordable Care Act (ACA or "ObamaCare") was passed by the United States Congress and was signed into law by Obama. Following its passage, provisions of the law have continued to be phased in, and as of January 1, 2014, the majority of American citizens and legal residents of the United States are required, by law, to have qualifying health care coverage.
If they fail to have coverage, they are responsible for paying an annual tax penalty for each month they aren't insured, which is known as the "individual mandate".
The cost of the penalty for failure to have qualifying coverage is $95 per adult and $47.50 per child, or 1% of your total taxable income; whichever amount is higher - as much as $285 per family. In 2017, the penalty increased, and has continued to increase thereafter.
Qualifying Exemptions For The Individual Mandate
Individuals who meet one of the following are exempt from the individual mandate and the associated tax penalties in FL:
- Illegal aliens
- Jailed individuals
- Religious objections
- The cost of health insurance coverage is higher than 8% of your household income
- Those who aren't covered for less than three months during the calendar year
- Those who have hardship waivers
- Your income level is blow the 100% poverty level
What Are The Affordable Care Act Requirements For Florida Small Businesses?
If you're a small business owner in Florida, you must provide your employees with insurance. This is a requirement that was put into place by the Affordable Care Act.
Referred to as the Employer Shared Responsibility provision, all employers must offer their employees at least one of the ACA-compliant Florida small business health insurance plans, otherwise then can face fines of up to $2,000 per employee.
Florida small business owners can purchase coverage for their employees through the state's Small Health Option Program (SHOP) exchange, or from a private insurance agent or broker.
Affordable Care Act Standardized Essential Health Benefits
As per the ACA, all qualifying health insurance plans must offer 10 standardized essential benefits.
Depending on the state, additional benefits may also be required. The 10 ACA standardized essential benefits are as follows:
- Ambulatory patient services (medical care that is offered without being admitted to a hospital)
- Emergency services
- Hospitalizations, such as overnight stays and surgical procedures
- Lab services
- Mental health and substance abuse disorder services, including behavioral health treatments, such as psychotherapy and counseling
- Pediatric health care services, including vision and oral care; however, adult vision and dental coverage aren't essential health benefits under ACA
- Pregnancy, maternity, and newborn care, including before and after birth
- Prescription pharmaceuticals
- Preventative and wellness services, as well as management for chronic diseases
- Rehabilitative and habilitative services and devices, including services and devices for injuries, disabilities, and chronic health conditions
Additional Health Benefits Mandated In Florida
In addition to these 10 standardized essential benefits, the State of Florida currently mandates health insurance companies also offer the following benefits:
- Bone marrow transplants
- Congenital anomaly for cleft lips/palates for children
- Diabetes care management
- Home health care services
- Off-label prescription pharmaceuticals
- Reconstructive surgery, including mastectomies
- Treatment for temporomandibular joint (TMJ) disorders
Standardized Florida Small Business Health Insurance Plans
In order to make it easier to compare costs and benefits, the Affordable Care Act has designated all qualifying Florida small business health insurance plans to be one of four metal colors, including Bronze, Silver, Gold, and Platinum.
Each of these designations is based on the average amount of health care costs that the plan will cover, which is illustrates at percentages of how much the insurance company will cover for health care, as well as the amount the insured will have to pay out-of-pocket.
All insurance companies that are participating in the federal or state health care exchange program must offer at least the Silver and Gold Florida small business health insurance plans.
All four of the metal plans have a shared maximum out-of-pocked amount that the insured can be charged during any calendar year. The following table illustrates this information:
|Metal Plan||Insurer Pays / Insured Pays|
|Bronze||60% / 40%|
|Silver||70% / 30%|
|Gold||80% / 20%|
|Platinum||90% / 10%|
As per the ACA, individuals cannot be denied coverage or charged higher premiums because of their past health history, or their gender.
Additionally, look-back and waiting periods cannot be imposed. Additionally, policies are effective when they are issued and all coverage is renewable if the individual chooses to renew the policy.
However, plans can be canceled if the individual fails to pay their premiums or commits fraud.
How Are FL Health Insurance Premiums Determined?
A premium is the amount the insured must pay out-of-pocket in order to maintain their health insurance policy. The premiums that are charged for any of the qualifying metal plans can be based on the following:
- Age of the individual
- Whether or not the individual uses tobacco
- Where the individual lives, based on a rating area
- The number of family members who will be enrolling
What Types Of Health Insurance Plans Are Available For Florida Small Businesses?
While there are several types of health insurance plans to choose from, the following plans are the most popular among FL small business owners:
Health Maintenance Organization - Simply known as an "HMO", this type of plan offers a variety of health-related services via a network of health care providers and hospitals that exclusively contract with the HMO, or who agree to offer their services to members of the HMO. Employees who participate in this type of plan usually have to choose a primary care physician (PCP), and receive most of their care from this physician. If a specialist is needed, the PCP will recommend one that is affiliated with the HMO.
Preferred Provider Organization - More commonly referred to simply as "PPO", this type of health insurance plan is the most common among Florida small business owners. The insurance company provides a preferred list of health care providers, and employees must receive their medical care from the doctors and hospitals on that list for their claims to be paid at the highest level possible - but they also have the flexibility to see any other provider anywhere in or out of state.
Point-of-Service Plan - Known as a (POS), this type of health insurance plan provides access to health care services at a lower overall cost, but with fewer choices. Members can access care from in-network or out-of-network providers and facilities, but coverage is better when you stay in-network. POS plans may vary, but generally, plans are considered a blend of HMO and PPO plans - offering more flexibility than HMOs, but less than PPOs.
Health Savings Account - A health savings account (HSA) is a special type of bank account that allows participants in the insurance plan to save money that can be used specifically for the medical care they require in the future. HSA-qualified health insurance plans are usually PPO plans that are specifically designed to be used with an HSA.
Indemnity Health Insurance - This type of health insurance plan allows members to control their own health care and to visit any doctor or hospital they choose. The insurance company would then pay a pre-determined percentage of the total charges for the services that were rendered. Employees may have to pay for some types of services up-front and then they can submit a request for reimbursement with the insurance company.
Florida Small Business Health Insurance Plans - The Bottom Line
We strongly advise business owners to speak with a CPA and a FL health insurance broker before jumping in and getting any type of the Florida small business health insurance plans available.
Make sure that you know exactly what each option can do for your company and the potential drawbacks associated with it.
Florida Economic Data And Commercial Insurance Requirements
If you are thinking about starting up a business in the state of Florida, it's important to understand the economic standing of the state before you set up shop. Furthermore, you should understand the rules and regulations regarding FL commercial insurance.
With this information, you will be able to determine if Florida is the right place for your business, and if so, what type of insurance you will need to carry to protect yourself, your employees, and the people that you serve.
Economic Trends For Businesses In FL
Florida is known as the sunshine state, and the economic outlook for this state is just as bright as the weather. It is estimated that the economy in Florida will reach $1 trillion by the end of the 2021 calendar year. However, while financially, the economy is expected to boom, it is forecasted that job growth will decline.
The reason for the economic boom? While businesses do certainly contribute to the economy, industry isn't the reason why Florida's economy is expected to soar; the residents that move to the state are largely responsible for its economic growth. Approximately 898 people move to Florida every day, and those new residents bring a tremendous amount of income for the state.
In terms of job growth, the rate of new jobs has been its highest since 2007; however, it is forecasted to slow during 2018. Approximately 180,000 new jobs will be added in 2018, which is slightly less than the new jobs that were added in 2017.
The industries that contribute the most to Florida's economy include:
- Aviation & Aerospace
- Financial Services
- International Trade
- Life Sciences
Commercial Insurance: Regulations & Limits In Florida
The Florida Office of Insurance Regulation regulates insurance in FL. The only type of coverage that business owners must carry is workers' compensation. Organizations in any industry must carry this type of coverage if they employ a staff of hourly or salaried workers. But, organizations that employ three or less people are not legally required to carry this type of coverage.
Business owners are also required to carry commercial auto insurance if they use any vehicles for their operations, such as making deliveries or transporting goods. Commercial liability insurance is another type of coverage that Florida business owners should consider carrying, though they are not legally required to have this type of insurance.
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Also find Florida insurance agents & brokers, FL local small businesses by General Liability Class Code and learn about Florida small business insurance requirements for general liability, business property, commercial auto & workers compensation including FL business insurance costs. Call us (954) 399-3996.
Small Business Health Insurance Plans By State
You can find more state specific small business health insurance information including requirments and coverage by clicking on the state below:
- North Carolina
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia