Florida Small Business Health Insurance Laws

Basic Knowledge about Florida's Small Business Health Insurance Laws

Like businesses of any size across the U.S., businesses operate under both federal and state laws. In Florida, small businesses with 1-50 employees are subjected to Florida small business health insurance laws. A self-employed individual is considered a small business in Florida however different laws and protections may apply to the self-employed. For a ruling on which of the small business health insurance laws in Flordia do or do not pertain to your small business, contact the Florida Department of Financial Services for clarification.

Things to Know About Small Business Health Insurance Law in Florida

In Florida, health insurance companies must offer the same health coverage plan that they sell to any other small businesses. Known as guaranteed issue, this does give small employer a better range of options. However the insurance company can require that a small employer must have a certain number of participating employees before issuing the plan. The insurance company may also require a minimum contribution from the employer to cover the cost of employee premiums. Florida small business health insurance law also provide for guaranteed renewability which means the insurance company cannot cancel the group's plan in the event someone in the group becomes ill. However insurance companies can charge small businesses a higher premium based on the age, gender, family size and smoking activity of the covered participants.

Impact of Flordia Small Business Health Insurance Law

Over the past four years, Florida residents and small businesses have seen double-digit increases in health premiums. The average cost of coverage hovers near to $3,000 per employee. As premiums escalate, small businesses often request employees to share some of the cost of their premium. The result is that many employees opt out of the plan thereby causing rates to rise or the plan is cancelled due to lack of participants. This in part explains why uninsured Americans are often employed workers who have a household income from $25000 to $45000 annually. The good news is health insurance law for small businesses in Florida is undergoing revision to help reverse these negative trends. Pooled purchasing is being developed so that small employers can increase their purchasing power, bargaining for better coverage at cheaper rates. And the expansion of Florida's Health Flex Plan is designed to provide basic coverage at low cost to low income workers. By Florida law, legislators can require cost-benefit analysis of new or current coverage mandates. These changes should help small businesses to realize better health coverage for employees at more affordable rates.

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