When Can Your Employee Start Coverage on Your Company's Health Insurance...

May 13, 2014

…and How Much Would it Cost?

You might not like this answer, but it depends - on both accounts.

If you offer more than one health insurance plan option, their rate will be determined by what plan they choose, if it’s single or family coverage, their age and if they use tobacco.

This rate isn’t that hard to come by, you just need to ask your health insurance agent or broker if they can provide you with the rate after you’ve given them the necessary information.

There is also two costs to consider, the full cost charged by the health insurance company and the final cost you end up sharing with the employee.

Also, remember the cost for all ACA plans are now based on the age of the employee and their dependents.

Start Dates

The date coverage starts is again up to you and how you’ve setup your plan. You will have the following options:

  1. Immediately - At the time of hire
  2. 30 day waiting period
  3. 60 day waiting period
  4. 90 day waiting period

There are advantages and disadvantages to both, however it mainly comes down to the type of business you have.

The Advice

If you’re having trouble deciding on what start date would work best for your company, you really just need to answer one question.

What is the turnover like for your company?

If you don’t have a lot of turnover, chances are a shorter waiting period would work better for you as you know there’s a good chance your newly hired employee isn’t going anywhere soon.

However, on the the other hand, if your company or industry is known for high turnover you will want to opt for the longer waiting period.

As far as managing the cost of your company’s health plan, well… That’s a blog post for a different day.

Just know that the terms good and bad health insurance are relative to the overall health needs of your company and that a “Cadillac plan” is rarely the answer.

Watch the short video below to get a better understanding what your company's options are for adding new employees and the cost related to that.

You can watch this video on YouTube by clicking here. You might also be interested in subscribing to our channel on YouTube so you will never be at a loss for an insurance answer.

This video is part of a five-day-a-week series that promises to answer one of your questions every day we are open for business. If you want to come along for the ride, click the subscribe button on the left:

If you would like some help with health insurance or want to make sure I'm a real human being, you can send me an email, give me a call at 440-964-8211 or talk face to face over the internet.

Giangola Insurance Agency, Inc.

1000 Lake Ave.
Ashtabula, OH 44004
Phone: 440-964-8211
Email: joey@giangolainsurance.com

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