Employers Select Insurance Services Joins OneDigital, a leading insurance, financial services, and HR Consulting firm.

Employers Select Insurance Services Joins OneDigital, a leading insurance, financial services, and HR Consulting firm.

Health insurance is now a requirement ever since the Affordable Care Act was passed. Although people are free to sign up for coverage on their own, many small business owners have taken it upon themselves to offer group health insurance to their employees.


Some business owners in Roseville and Sacramento, however, are a little hesitant to do this because of certain prevalent myths surrounding group health insurance. If you are still on the fence, read on as we tackle the most common myths and show you why health insurance for small business owners is actually a valuable addition to your business:


Entrepreneur Reviewing Health Insurance for Small Business Owners


All Employees Must Have the Same Coverage

No. You are not required to offer employees the exact same coverage across the board. You are more than welcome to offer coverage from multiple carriers and multiple benefit levels. Offering four to six plans maximum is recommended. Feel free to create personalized, competitive health insurance packages to help you retain your best employees and attract high-level recruits.


Group Health Insurance is Too Big an Expense for Small Businesses

It may seem like an overwhelming expense at first, especially if you have more than 50 employees on the payroll. However, many first-time business owners do not realize that group health insurance opens the door for significant tax deductions for your business. Health insurance premiums are one of the most common deductions to business taxes. The government also offers other types of tax deductions if your business meets certain requirements. Consult a trusted brokerage like Employers Select Insurance Services, Inc. Inc. to see if your preferred health insurance for small business owners makes the cut.


Businesses Must Shoulder 70 Percent of Monthly Premiums

Some businesses are quite generous and do offer to pay 90-100 percent of the monthly premium for their employees. However, there is no rule that forces your business to do so. In general, small business owners must cover at least 50 percent of the premium so you can benefit from tax deductions. If you can comfortably afford to offer more than 50 percent, do so since this can also help attract quality employees to your business.


Health Insurance Means Smaller Pay for Employees

There is a grain of truth in this myth, but it is largely a misconception. Salary deductions to pay the monthly premium of group health insurance are done with pre-tax dollars. On the other hand, purchasing individual health insurance is done with post-tax dollars. In other words, your employees actually save as much as 22 percent on health insurance if they decide to go with the group health insurance your business offers.



Here’s How to Pick the Best Small Business Health Insurance for Your Bottom Line [Infographic], fundera.com




Sacramento, CA Office:
5701 Lonetree Blvd., Ste. 111
Rocklin, CA 95765
(916) 248-4777

Service Areas

California businesses and multi-state employers service areas.


National Association Of Health Underwriters

Employers Select Insurance Services, Inc., CA DOI#: 0H81881 | Site Map