Implementing The Plan

Category: Finance, Insurance.

If you own a small business in Dallas, Houston or anywhere else in Texas and are looking for a health insurance provider for your employees, here s a standard list of business data you ll need to provide: - Employer name. Insurers need the street address, not a P.

The legal name of your company. - Address of your business. Not all employees will be eligible. - Tax identification or employer identification number. Box, to determine your region or service area. - A list of employees you plan to cover. This is the EIN( sometimes called FEIN) you obtained from the IRS when you started your business. - Business background. Insurers use this to estimate the health care costs your group is likely to incur. Depending on the size of your business, you may have to provide: - Date your business started. - Payroll records. - Standard Industry Code( SIC or NAIC) , informing the insurer what industry you re in. - Quarterly salary and wages for the past two quarters. - Employee census information. A census does not include health status, religion, race, sexual orientation( even if applying for domestic partner benefits) , Social Security number, or U.

In order to quote you a rate, insurers will ask you to complete a census form for each of your employees with this information: - Name. - Age or date of birth. - Number of dependents. - Zip code. S. citizenship/ immigration status. Creating a Schedule. This should be at least six weeks ahead, so you ll have time to complete the administrative steps, but no more than three months ahead, so the quotes don t expire. Next, you ll need to finalize these scheduling details early in the process of shopping for an insurance plan: - Effective date of coverage. Most employers choose the first of the month to begin coverage. - Plan cycle.

Some plans operate on a different 12- month cycle, or your company may have specific busy seasons when you don t want to deal with insurance issues. Many plans operate on a calendar- year basis( January- December) . Establishing a Budget. Calculate an amount as a percentage of your total monthly and annual payroll. - Per employee per month. Once you finish creating a schedule, you ll need to determine how much money you can afford to spend for coverage, and then calculate the cost: - By percentage of payroll. Calculate how much you could spend per employee per month.

Based on your budget, you can figure those variables later. - Consider cash- flow issues. - Monthly premium commitment. Determine a bottom- line maximum figure, without worrying about such variables as employee contributions or dependent coverage. Most insurers require payment on the first day of the month covered. If you re buying coverage for the first time or replacing existing coverage, the insurer will likely ask for a month s premium in advance. - Grace period. You would pay for April coverage on April 1, May coverage on May 1, and so on. Most insurers offer a 30- day grace period on paying premiums. Ask about your insurer s grace period and notification policy regarding cancellation. - Cancellation/ reinstatement.

If you re a few days late, your policy isn t likely to be cancelled. If you re habitually late with payments, your insurer has the right to cancel your group insurance. Most premiums are renewed annually, which means the insurer can adjust the price once a year. Most insurers have their own procedures for reinstating canceled polices, so be sure to ask. - Premium increases. Some plans allow insurers to increase premiums every six months. How to Find Your Health Insurance Plan. By law, you must be given at least 30 days notice of a proposed increase.

Now that you ve gathered your information and put together your schedule and budget, it s time to start looking for a plan. These licensed professionals can help you find and choose the best plan for your business. Brokers Versus Agents. They know: - The best products available, and. - State and federal regulations to protect your business from liabilities. - They ve also satisfied licensing requirements that require them to keep up- to- date on Texas insurance market. An agent works with only one company and promotes that company s products. A broker can direct you to products offered by a range of providers. Both may be referred to as" agents" and are licensed professionals in the state of Texas.

Online Options. The broker or agent will help you: - Shop for the right plan for your company and provide one or more premium quotes. - Discuss alternatives to help you understand your plan options. - Implement the plan you select. - Service the account, including solving problems with billing, and claims, eligibility. - Do the legwork so you don t have to spend the time. - Get the most from the coverage you purchase. - Expedite the renewal process. The online world is changing rapidly and the number of consumers and employers using the Internet to research or purchase health insurance is dramatically increasing. Implementing the Plan. The Internet makes it easier to shop for health insurance, you can learn about your options from the comfort of your home or office and on your own schedules- without pressure to buy. Review the various plans you ve chosen for your business: - Weigh the benefits against the plan costs. - Research the insurers for: - Financial stability. - Ease of administration. - Overall quality of service. - Consider cost- saving strategies. - Review at least two to three health insurance carriers and plan options. Action Plan Checklist: - Sign the contract before the quote expires, usually within 30 days. - Communicate plan choices to employees. - Distribute and collect enrollment materials for those people covered. - Copy and return all original materials for enrollment before the requested date.