Terry Savage: Lower health care premiums with small biz insurance

Suddenly millions of working 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 called the Small Business Special Enrollment period which runs from November 15 through December 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. And the employees can pay the premiums on a pre-tax (salary deduction) basis.

And according to Alan Wishner of Vesta Benefits Group (www.VestaBenefitsGroup.com), millions of small businesses could easily set up these policies — even if the owner is older and on Medicare. 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 from 2 to 50 employees — who thought offering a health care benefit was too expensive or too complex, read on. (And if you work for a small business that doesn't offer group health insurance, show this column to the owner!)

The Affordable Care Act 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 comprehensive coverage as the generous coverage plans negotiated by large businesses in your state. Those plans have large networks of hospitals and physicians.

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

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 how this small business insurance deal works:

Dates: Small businesses (2-50 employees) must apply between November 15 and December 15. The plan becomes effective January 1, 2026.

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 or Medicare, and only one person wants this coverage, the plan is qualified. For example, a business owner who is older and covered by Medicare does not have to join the plan — but can offer the insurance to up to 50 employees.

Coverage: The plan 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 is NOT required to contribute on behalf of the employee. And an employee can pay premiums on a pre-tax, salary deduction basis.

Pre-existing conditions: There are no limitations, because of the provisions of the ACA.

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

Obviously, it will be tempting for sole proprietors to create this small business group plan just to get the coverage. However, you must prove that you have had at least two employees or at least two partners that received income from the business.

If you're a small business that hasn't provided insurance, 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, and eHealth (www.ehealthinsurance.com), which has small business 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 December 15 deadline.

I know this is the one deal that sounds too good to be true. But it is true! And that's the Savage Truth.

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