Lower health costs with small business plan

Suddenly millions ofworking Americans can no longer afford "Obamacare" health insurance, as premium subsidies have been removed. But there is one other potential health insurance opportunity that could offer significantly lower premiums— if you act quickly.

It’s the Small Business Special Enrollment period through Dec. 15.

This is a little-understood opportunity for businesses with as few as two employees— and a minimum of only one plan participant— to purchase a top-rated group plan with no employer contribution required. Employees can pay the premiums on a pre-tax (salary deduction) basis.

And according to AlanWishner ofVesta Benefits Group, millions of small businesses could easily set up these policies— even if the owner is older and onMedicare. As long as there are two employees, only one has to sign on to the health insurance.

So, if you’re a small business owner— with 2 to 50 employees— whothought offering a health care benefitwas too expensive or complex, read on. (If you work for a small business with no health insurance, showthis column to the owner!) The Affordable CareAct mandated that insurers must offer their best group health insurance plans to small businesses during a once-a-year special enrollment period.

These plans must offer the same coverage as the generous coverage plans negotiated by large businesses in your state.

During this period, all insurance companies selling plans in your state agree to accept all small businesses that apply.

Not surprisingly, few insurance agents are pushing these plans, because they are a nuisance to the insurers and don’t generate big commissions for the agent. So it’s up to you— the small business owner— to research this coverage.

Here’s howthis small business insurance dealworks.

Qualifications: Businesses can set up a plan even if only one full-time employee joins. So, if some employees are covered by a spousal plan orMedicare, and only one personwants this coverage, the plan is qualified. For example, a business owner whois older and covered byMedicare does not have to join the plan— but can offer the insurance to up to 50 employees.

Coverage: It must offer equally comprehensive coverage and premiums as group plans for other businesses in the state.

Premiums: The monthly premiums must be comparable to those offered to traditional small group plans.

Costs: The employer isNOTrequired to contribute on behalf of the employee.

And an employee can pay premiums on a pre-tax, salary deduction basis.

Pre-existingconditions: No limitations due to the provisions of theACA.

Dependentcoverage: Because these are true group insurance plans, dependents such as spouses and minor children under age 26 are also eligible for coverage.

It’s tempting for sole proprietors to create this small business group plan for the coverage. But you must prove you’ve had at least twoworkers or two partners that got income fromthe business.

So you could be a hero to your employees. But you must act quickly to get these benefits for 2026. Ask your insurance agent— or go to the specialists to get guidance, such as: Vesta Benefits Group (www.vestabenefitsgroup.com) for Illinois businesses, andeHealth (www.ehealthinsurance. com), which has agents nationally.

Don’t delay. You need to speak with an agent to see if you can qualify and find your premium costs— and to begin the paperwork so applications can be submitted before the Dec. 15 deadline.

I knowthis is the one deal that sounds too good to be true. But it is true! And that’s the SavageTruth.

Terry Savage is a registered investment adviser and the author of four bestselling books, including "The Savage Truth on Money." Terry responds to questions on her blog at TerrySavage.com.

Terry Savage

The Savage Truth