Terry Savage: Small business owners, now is the time to offer health insurance coverage

Millions of Americans lost their health insurance this year when Obamacare premium subsidies disappeared.

Many small families found that their health insurance costs quadrupled — pricing them out of the market. Many of these uninsured work for small businesses that do not offer health insurance.

But this month, if you work for a small business, there is a once-a-year chance to get the same affordable group health plan coverage that is offered to big businesses in your state — at absolutely no cost to your employer!

As an employee of a participating small business, you can pay your new, affordable premiums on a pre-tax basis. And even if the owner doesn't personally need the health insurance (perhaps they are already on Medicare or covered by a spouse's plan), they can still offer this plan to employees at no cost to the business. But they must act quickly.

If it sounds too good to be true, it's because the big insurance companies that are compelled to offer these plans don't really want to talk about it. It's just too much hassle to sign up these plans with few workers.

But read on — and show this to your boss, if he or she is a small business owner. Bosses know that their employees will work harder and be more inclined to stay with the company because of this great health insurance benefit. The window is open now.

It's called the Small Business Special Enrollment Period, and it runs from Nov. 15 through Dec. 15.

This is a little-understood opportunity for businesses with as few as two employees to purchase a top-rated group plan with no employer contribution required. And the employees can pay their monthly premiums on a pre-tax (salary deduction) basis.

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 at least two employees, only one has to sign on to the health insurance.

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Small Business Special Enrollment Period

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.

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, 2027.

Qualifications: Businesses can set up a plan even if only one full-time employee joins.

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.

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 2027.

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.

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