How do you know if your employees are eligible for group health insurance? Employees must meet the predetermined qualifications to be eligible. There are three main factors. These are the number of hours they work, the percentage of employees on the plan, and the waiting period.
How many hours do your employees work?
Which employees will be on the group health insurance plan? You get to make this decision. As a guide, part-time employees usually work at least 20 hours, while full-time is at a minimum of 30 hours for most companies. Will you offer part-time employees coverage? What number of hours will be your cut-off for employees on the plan?
What percentage of employees will be on the plan?
Next, you must determine the number of employees on the plan relative to the total number of employees. Generally, 70-75% of employees need to be part of a plan for you to offer it. However, we suggest speaking with a certified insurance broker for specific percentages.
Is there a waiting period for employees?
Additionally, the hire date can influence eligibility. It is another decision that the employer controls. Typically, employers can implement a waiting period if desired. For example, a wait of 60 days from the hire date before an employee becomes eligible for group health insurance.
What information do you need from your employees for group health insurance?
After you’ve figured out which employees will be part of your group health insurance plan, you will need to make a list of basic information about them. Your insurance broker needs the employee’s name, zip code, hire date, employee birth date, and birth dates of any employees. This information will help develop a quote for your business.
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