Affordable Health Insurance for Small Businesses via Covered California

Finding health insurance for your small business can be a daunting task, but Covered California for Small Business (CCSB) offers a solution that is flexible, cost-effective, and easy to manage. This state-sponsored service provides high-quality health and dental coverage options for your employees, helping you attract top talent to your organization while keeping your budget in check.

Why Choose Covered California for Small Business?

Covered California for Small Business (CCSB) is a state-run program designed to connect small businesses with affordable, brand-name health plans. By offering health benefits through CCSB, you can attract great employees and potentially qualify for federal tax credits to offset the cost of these benefits.

Flexibility and Options:

CCSB allows small business owners to choose from four tiers of coverage—Bronze, Silver, Gold, and Platinum—provided by three well-known health insurance companies: Blue Shield of California, Kaiser Permanente, and Sharp Health Plan. These tiers offer a range of plans to fit different budgets and employee needs. Your employees can also pick from one of four dental insurance plans that best suits their dental care needs. Partnering with a group health insurance broker can help you better understand these options and select the best plan for your company.

Simplified Billing

One of the key advantages of CCSB is the simplicity it brings to managing health insurance for your employees. You’ll receive a single, consolidated invoice each month, regardless of how many plans or insurance providers are involved. This streamlined billing process helps reduce administrative burdens and makes it easier to keep track of your expenses.

Tax Credits and Financial Benefits:

Another advantage of offering health insurance through CCSB is the potential to qualify for federal tax credits. To be eligible, your business must cover at least 50% of the cost of your employees' health insurance. The amount of credit you receive depends on the size of your business, the average wages of your employees, and the amount you contribute to their premiums.

Smaller businesses with fewer than 25 full-time equivalent (FTE) employees and average annual wages below $62,000 typically receive the most significant credits. For-profit businesses can receive a maximum tax credit of up to 50% of monthly premiums, while non-profit organizations can get reimbursed up to 35%.

How to Qualify for CCSB

To participate in CCSB, your small business must meet specific criteria:

●     Have between 1 and 100 FTE employees.

●     At least one employee must receive a W-2, and most employees must live in California.

●     The employer must contribute at least 50% to the premium of the lowest-cost reference level tier for their employees.

If your business meets these requirements, you can start offering health insurance through CCSB. Working with a group health insurance broker can help you navigate the application process so you can begin providing essential healthcare benefits to your employees.

Complying with Legal Requirements

For businesses with 50 or more FTE employees, offering health insurance is not just an option—it’s the law. Under the Affordable Care Act (ACA), businesses of this size are required to provide health coverage to their employees or face potential penalties. This makes securing affordable health insurance through CCSB a good option for mid-sized businesses looking to comply with legal requirements.

Options for Sole Proprietors and Self-Employed Individuals

For sole proprietors and self-employed individuals without W-2 employees, CCSB offers individual and family plans. These plans are also eligible for financial assistance through Covered California, making it easier to find affordable coverage even if you’re running a one-person operation.

How CCSB Health Plans Work

CCSB gives both employers and employees a variety of options:

●     Employer Contribution: Business owners can define their contribution to health care benefits, allowing them to control costs.

●     Employee Choice: Employees can choose their own plans based on their individual needs, including whether or not to include dental coverage. All health plans cover essential health benefits, such as prescription drugs and emergency services.

Employees can select from a range of plans offered by trusted insurance companies. The available metal tiers allow employees to balance their coverage level with their budget, ensuring that they get the best possible plan for their needs.

Managing Your Plans with MyCCSB

Once your business is enrolled in CCSB, managing your health and dental plans is straightforward. MyCCSB, an online management tool, allows you to enroll, compare, and manage plans, make changes, renew policies, and handle billing—all in one place. This streamlined process saves time and reduces administrative burdens, making it easier to focus on running your business.

How to Apply for CCSB

Applying for CCSB is simple and can be done at any time of the year. Unlike individual applicants, small businesses are not restricted by enrollment periods. New applications are accepted each month, with the official monthly cutoff for same-month coverage being the first of the month.

For assistance, you can contact a CCSB agent free of charge. They will help you navigate the process and provide a quote within two business days, allowing you to quickly secure the benefits your employees need. Once you secure benefits for your employees through CCSB, you can use Sackett Insurance’s benefits management software to simplify your benefits search and onboarding process for new team members.

Making the Most of Your Health Insurance Benefits

Covered California for Small Business offers a practical solution for securing affordable health insurance, with extensive benefits for your company and employees. By exploring CCSB’s offerings, you can ensure that your small business provides competitive and cost-effective health coverage while supporting your employees' well-being.

If you are looking to secure affordable health insurance for your company, contact us at Sackett Insurance to speak to one of our insurance agents. We can provide you with more information on the Covered California plan to see if it is the right fit for your small business.