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Things that small business owners should know about health insurance

Any company that has no less than two but no more than fifty full-time employees is classified as a small business. If you operate a small business, you have to know what the rules are when it comes to health insurance. It'll be tough to find the best health insurance quotes in California if you don't know what you're getting yourself into.
When should an employee get health insurance?

An employee has 31 days from the day they begin working to be registered for health insurance by small business employers. Beyond the first 31 days, the employee will have to wait up to 365 days for the next open enrollment period. A small business employer can make a mandatory 90-day period of waiting time before the employee is covered by the company’s health insurance.

What are the rules and regulations for the employer in terms of health insurance?

There are a number of things that a small business employer must keep in mind when it comes to providing health insurance to their employees.

Affordable Care Act

Also known as Obamacare, the Affordable Care Act (ACA) brought about tax credits to both businesses and individuals that purchase or provide health insurance. From 2014 onwards, small business employers have had the obligation to offer group health insurance to their employees or at least share the expenses of their employee’s insurance premiums.

Health Insurance Portability and Accountability Act

Known as the HIPAA, these regulations require small business employers to make every coverage available for their employees. The HIPAA prevents employers from limiting the options of their employees when it comes to health insurance. The health conditions of a small business employee should not affect the premium rates for coverage under this regulation.

Family and Medical Leave Act

Under the Family and Medical Leave Act (FMLA), small business employees are entitled to take a temporary leave of absence to tend to themselves or a family member. Small business owners have the benefit of knowing when one of their employees is eligible for a leave. Any eligible employee must be given the same health insurance coverage regardless of whether they are on leave or not. It is mandatory for the company to continue this coverage for up to 12 weeks of the employee’s absence.

What does an employee need to do to become qualified for health insurance?

Small businesses are required to offer the same health insurance to all of their employees as well as their dependents. These employees, however, are not required to opt for coverage. If they do, the health insurance coverage must be equal under the terms and conditions for the dependents and spouses of the employee.

How much does a small business have to pay when covering an employee?

Small business employers are not mandated by law to pay for their employee’s health insurance coverage. They are only required to offer it, but the expenses of the employee premiums are not shouldered by the company.

19 Apr 2017 16:27


About Boris Dzhingarov

Boris Dzhingarov graduated UNWE with a major in marketing. He is the CEO of ESBO ltd brand mentioning agency. He writes for several online sites such as,,, Boris is the founder of and