UT Small Business Health Insurance Plans
Utah Small Business Health Insurance Plans 2022. The following is an overview of the rules that govern small group health insurance plans in the State of Utah.
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 Utah State government.
If you own and operate a UT 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 Utah small business health insurance plans available.
Learn how to get Utah small business health insurance plans for 1 to 50 employees. The best small business health insurance providers in UT offer affordable rates, flexible coverage options and access to a large network of medical providers.
Below are some answers to commonly asked UT small business health insurance plan questions:
- How Much Does Utah Small Business Health Insurance Cost?
- What Are The Small Business Health Insurance Regulations In Utah?
- Does Utah Participate In The Affordable Care Act?
- What Are The Affordable Care Act Requirements For Utah Small Businesses?
- How Are UT Health Insurance Premiums Are Determined?
- What Types Of Health Insurance Plans Are Available For Utah Small Businesses?
How Much Does Utah Small Business Health Insurance Cost?
The average price of a standard Utah 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 Utah?
Utah imposes fewer regulations on small business health insurance policies than most states. Regardless, if you're a small business owner in Utah, it's important to be aware of the regulations that do exist so that you can make the right decisions for yourself and your business.
In Utah, some of the most important small group health insurance regulations are those that pertain to the policies themselves. For example, a basic policy provision that all health insurance policies in Utah must include is a guaranteed renewability.
As long as the premiums have been paid and no fraud has been committed, if you would like to renew your existing policy, the health insurance company must honor your request. Additionally, health insurance companies can impose pre-existing condition exclusions. If this exclusion is imposed, a health insurance company is not required to cover the cost of medical care that the insured has received for pre-existing conditions during the exclusion period, which can last no longer than 12 months.
In Utah, a pre-existing condition is classified as any medical condition that is diagnosed within 6 months before the effective date of a policy.
However, when applying for a new policy, as long as the insured has had continuous coverage (they've continued to pay their premiums and haven't committed fraud), the exclusion policy for the old policy can be used to credit the exclusion period for the new policy.
Another law that pertains to Utah small business health insurance plans is an elimination rider. With this ride, an insurance company is legally allowed to permanently refuse coverage for certain types of pre-existing conditions.
The Utah Department of Health, offers many resources on health insurance and the Affordable Care Act (ACA / Obomacare).
Does Utah 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 UT:
- 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 Utah Small Businesses?
If you're a small business owner in Utah, 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 Utah small business health insurance plans, otherwise then can face fines of up to $2,000 per employee.
Utah 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 Utah
In addition to the standardized essential health benefits that have been established by Obama Care, health insurance policies in Utah must also offer coverage for benefits that have been mandated by Utah government. These benefits exceed the requirements of the ACA and include the following:
- Diabetes care management
- Durable medical equipment - prosthetic devices
- Reconstructive surgery following mastectomy
Standardized Utah Small Business Health Insurance Plans
In order to make it easier to compare costs and benefits, the Affordable Care Act has designated all qualifying Utah 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 Utah 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 UT 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 Utah Small Businesses?
While there are several types of health insurance plans to choose from, the following plans are the most popular among UT 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 Utah 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.
Utah Small Business Health Insurance Plans - The Bottom Line
We strongly advise business owners to speak with a CPA and a UT health insurance broker before jumping in and getting any type of the Utah 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.
Utah Economic Data, Regulations & Limits On Commercial Insurance
If you are an entrepreneur who has your sights setting on opening up a business in the state of Utah or you are thinking about expanding your operation to the Beehive State, making sure that it offers a climate and demographic that will support your industry is vital to your overall success. If the state does not offer a positive business climate or demographics that will benefit from the products and/or services that you offer, there's a good chance your business could fail.
By assessing the employment rate as well as the key industries that are thriving in UT you will be able to determine if it is an ideal location for your enterprise. Additionally, knowing what type of commercial insurance coverage you'll need is important so you can make sure you are properly protected and set yourself up for success.
Economic Trends For Utah Business Owners
As of January, 2022, Utah has one of the strongest labor markets in the country. At this time, the unemployment rate was registered at 3.1 percent, which is lower than the national average of 3.6 percent. The unemployment rate to continue holding steady or drop even further, as more job opportunities are projected to become available.
Both large urban and small urban areas offer good opportunities for business owners. In a report that was issued at the end of 2018, six Utah cities were included on the list of top cities to start a business in the United States. These cities include:
- St George
Salt Lake City, the state's capital, and the surrounding areas also offer opportunities for business owners who are interested in starting a business in Utah.
The top industries that are poised to see the most growth in Utah over the course of the next few years include:
- Aerospace and defense
- Information technology
- Leisure and hospitality
- Petroleum production
If you are considering going into business in UT, having an operation in any of these industries will likely afford you success.
Commercial Insurance Regulations In Utah
The Utah Insurance Department regulates commercial insurance in the Beehive State. Business owners are required to invest in commercial insurance coverage, as it safeguards their interests, as well as the interest of all that are involved in the company, including employees, clients, and vendors.
Just like any other state in the country, there are specific types of commercial insurance coverage that business owners need to carry in UT. These coverages include:
- Workers Compensation Insurance: Pays for medical expenses and lost wages should an employee sustain a work-related injury or illness.
- Commercial Auto Insurance: For vehicles over a certain weight, covers any damages if a vehicle that is used for work-related purposes is involved in an accident.
Request a free Utah small business health insurance plans quote in these other UT cities: Alpine, American Fork, Bluffdale, Bountiful, Brigham City, Cedar City, Cedar Hills, Centerville, Clearfield, Clinton, Cottonwood Heights, Draper, Eagle Mountain, Enoch, Ephraim, Farmington, Farr West, Fruit Heights, Grantsville, Harrisville, Heber, Herriman, Highland, Holladay, Hooper, Hurricane, Hyde Park, Hyrum, Ivins, Kanab, Kaysville, Kearns, La Verkin, Layton, Lehi, Lindon, Logan, Maeser, Magna, Mapleton, Midvale, Midway, Millcreek, Moab, Morgan, Murray, Nephi, Nibley, North Logan, North Ogden, North Salt Lake, Ogden, Orem, Park City, Payson, Perry, Plain City, Pleasant Grove, Pleasant View, Price, Providence, Provo, Richfield, Riverdale, Riverton, Roosevelt, Roy, Salem, Salt Lake City, Sandy, Santa Clara, Santaquin, Saratoga Springs, Smithfield, Snyderville, South Jordan, South Ogden, South Salt Lake, South Weber, Spanish Fork, Springville, St. George, Stansbury Park, Summit Park, Sunset, Syracuse, Taylorsville, Tooele, Tremonton, Vernal, Vineyard, Washington, Washington Terrace, West Bountiful, West Haven, West Jordan, West Point, West Valley City, White City, Woods Cross and all other UT cities & Utah counties near me in The Beehive State.
Also find UT local small businesses by General Liability Class Code and learn about Utah small business insurance requirements for general liability, business property, commercial auto & workers compensation including UT business insurance costs. Call us (801) 704-1677.
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