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Texas Small Business Health Insurance

While Texas may be nicknamed the “Lone Star State” it is by no means lonely in the small business health insurance department. In 2003 close to one million small businesses were open yet only a third of the small business employers in TX actually offered health insurance to their employees. Fortunately, the state of Texas stepped in and Texas now has a mandated Health Savings Account, which lowers employer’s health insurance premium costs. Because of this mandated account, many more small business employers can afford to offer their employees health insurance. Another great aspect of the Health Savings account is that it can’t be used by creditors to pay any bad debts the employer might have.

What Is Texas Small Business Health Insurance?

In order to qualify for small business heath insurance in the state of Texas a business can have anywhere from 2-50 employees. If a company meets the requirements of an insurance company offering small business health insurance then the insurance company cannot refuse the company insurance, even if there are health problems in the insured group. Additionally, if after being insured a member of the insured group develops health problems the insurance company cannot cancel the insurance.

While the insurance company cannot cancel or refuse qualified employers there are certain instances where the insurance company can raise the cost of the premium or even deny the policy if certain minimum requirements are not met. For example, if an insured member develops a health problem or is at risk for a health problem then the insurance company cannot stop coverage – however they are allowed to increase the premium, but only by a limited percent.

In addition, health insurance companies offering small business health insurance in Texas can impose a minimum enrollment number. What this means for the small business employer is that a certain percent of their employees must purchase insurance through the group policy or the insurance company will not qualify the employer. Insurance companies can also make it mandatory for the employer to pay a certain portion of each employee’s premium. Without a guarantee from the employer that they will pay a predetermined percent of his or hers employees premium then the insurance company can refuse to insure the small business owner.

Advantages Of Texas Small Business Health Insurance

The advantage of holding a small business insurance policy is that it is often easier to qualify for, especially if an individual is not in the best of health. Keep in mind however that Texas small business health insurance rates will be approximately double the cost of a similar Texas individual health insurance plan with similar coverage. This is true because of the aforementioned underwriting standards for TX small business health insurance – nearly all who apply are accepted regardless of health issues. This is not the case with Texas individual health insurance as applicants must be somewhat healthy in order to be accepted onto the individual plan (unless the individual qualifies for a guaranteed issue Texas HIPAA health insurance plan that is mandated by law to be guaranteed issue and to not exclude any pre-existing conditions).

Think of it in the sense that of course Texas individual health insurance rates will be much cheaper than group health insurance rates because with individual plans the insurance company gets to pick and choose who they will extend coverage to (the healthy) while on the group side even if someone has cancer the insurance company still has to accept them onto the group plan (and this in turn drives up the rates for everyone). Overall, small business insurance in Texas is easy to qualify for and could be an appropriate way to obtain health insurance for the employees in your business – especially if there are employees with major health problems that are unable to qualify for a Texas individual health insurance plan.

Save MoneyOn Texas Small Business Health Insurance Now!

Small business health insurance in Texas can be a great way to provide insurance to your employees. As an employer having met the basic qualifications you are guaranteed coverage and guaranteed to keep that coverage even when one of the insured members becomes a medical risk. The employer can also provide insurance to his employees at a lower cost now, thanks to the state mandated Health Savings account. With lower costs and significant benefits such as more expansive coverage and lower premiums, small business insurance can be a great source of health insurance for those employers of less than 50 employees.

You may also want to consider a Health Reimbursement Account (HRA) or medical reimbursement plan to take advantage of the cheaper prices of individual health insurance while still maintaining the employer tax deduction for providing employees with health benefits. Whatever route you decide to go – be sure and comparison shop to find the best value. Speak with one of the licensed independent Texas health insurance agents in our network that can help you compare both group and individual health insurance benefit plans.

Compare the top insurance companies in your business zip code now by requesting a free Texas health insurance quote comparison!

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