|
Maryland Announces Insurance Partnership with small business
Maryland Announces Insurance PartnershipGovernor O’Malley proposed and signed into law a program to reduce the number of uninsured Marylanders. The Working Families & Small Business Health Coverage Act, approved during the Special Session of 2007 establishes the Health Insurance Partnership (HIP) for small employers not currently offering health insurance to their employees.
Under the PARTNERSHIP, a small business that has 2 to 9 full-time employees, has not offered health insurance to its employees during the previous 12 months, and meets wage and salary requirements established by the Commission , is eligible to receive a subsidy of up to 50% of the premium.
Family coverage can also be subsidized. Once enrolled in the Partnership, the business is likely to continue to be eligible for the subsidy in following years.
To receive the premium subsidy, the employer must establish a Section 125 premium conversion plan and must also purchase a wellness benefit as part of the health plan. Employer Eligibility - At the time of initial application, the business must meet the following requirements:
1. At the time of initial application, the business must meet the following requirements: The business has at least 2 and no more than 9 full-time employees.
- Full-time is defined as any individual who is not a temporary, seasonal, or substitute employee and works 30 hours or more per week.
2. Owners and partners working more than 30 hours per week at the business count as full-time employees.
3. The business has not offered insurance to its employees in the most recent 12 months. The average wage of the full-time employees is below $50,000.
Employee Eligibility - Any full-time employee who obtains health insurance through an eligible small employer’s plan may receive a subsidy toward the cost of employee-only coverage. A full-time employee seeking an additional subsidy for dependent coverage (spouse and/or children) must have a family income of less than $75,000.
Part-time, temporary, and seasonal employees do not qualify for a subsidy.
Subsidy Amount The subsidy per employee depends on the health insurance coverage chosen and the average annual wage for the business.
The premium subsidy is up to 50% of the premium for each participating employee.
Each year, the Commission will publish a premium schedule on the Commission’s website showing the maximum subsidy amount for different types of coverage and different average annual wage amounts.
Any planned employer contribution to an employee’s Health Savings Account is treated as an additional employer premium contribution in calculating the premium subsidy.
How to ApplyStep 1 - Contact Infiniti Benefits
Employers should first select a health insurance broker/agent who will assist with the subsidy application process.
Step 2 - Complete the application
The employer will have to provide the required information in an application for health insurance plus additional information about the wages of each full-time employee.
Based on that information, the broker/agent will be able to calculate the total subsidy per employee for different health plans as well as the total cost to the employer after the subsidy is applied.
Step 3 - Select a health benefit plan
The employer and broker/agent will work together to select a small employer health benefit plan that includes a wellness benefit.
A wellness benefit must be included within the health plan in order for the plan to qualify for the subsidy.
Step 4 - Determine Employer Contribution
The employer will determine the employer contribution to the employees’ premium. If the health plan includes a Health Savings Account, the employer also determines the amount of the employer contribution.
The total subsidy is divided between an employer and the employee based on the contribution each makes toward the cost of coverage.
Step 5 - Establish a Section 125 Plan.
The employer must establish a Section 125 plan within 60 days of enrollment in the Small Employer Subsidy Program.
|
