Idaho small business health insurance falls into a special industry niche, embracing organizations with at least two but fewer than 50 employees. Chances are good that if a company fits those criteria, it will qualify for group health plan rates. Sole proprietors and consultants must take out individual policies even if they are incorporated as a business.
Both the employer and the employees win with Idaho small business health insurance. Employer contributions to the plan are 100 percent deductible. As for the employees, not only do they have access to health insurance they might not otherwise be able to afford, but they pay less in payroll taxes by the amount of their portion of the premium.
How Idaho Small Business Health Insurance Works
State regulations dictate that insurance companies selling health policies must offer employees of small businesses the same choice of basic, standard, or catastrophic options that they offer large businesses. At the same time, the insurer is allowed to set minimum participation levels among employees of small business contracts. For example, if a small business with 37 employees takes out a group policy but only three employees are interested in taking out a policy, the insurance company can withdraw the entire policy.
State law protects all parties in Idaho small business health insurance contracts. For example, the insuring company can stipulate the proportion of the total premium that the employer must contribute. Regulations, however, protect both the employer and the employees from having either individual coverage or the entire policy withdrawn on the basis of a single employee illness.