{"id":4725,"date":"2016-04-04T10:47:41","date_gmt":"2016-04-04T15:47:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/health-insurance-overview.html"},"modified":"2024-06-06T04:54:05","modified_gmt":"2024-06-06T09:54:05","slug":"health-insurance-overview","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/health-insurance-overview.html","title":{"rendered":"Employer Health Insurance Laws"},"content":{"rendered":"\n
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Employer Health Insurance Laws<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Businesses today need ways to attract and keep employees. One way is to offer health insurance. No state or federal laws require a specific type of health insurance. Employers who provide health benefits must follow laws related to discrimination and recordkeeping.<\/p>\r\n

Small business owners may be caught between wanting to give their workers a health insurance plan\u00a0and premium costs a smaller company cannot afford. There are ways for small businesses to provide group health coverage for their workers while keeping costs low.<\/p>\r\n

This article reviews some laws employers must follow, and some health insurance options for small business owners to consider.<\/p>\r\n

FindLaw’s\u00a0Wages and Benefits<\/a>\u00a0section has more information about health insurance and employee benefits.<\/i><\/b><\/p>\r\n

The Affordable Care Act<\/h2>\r\n

The\u00a0Affordable Care Act<\/a>\u00a0(ACA) requires employers with more than\u00a050 full-time employees<\/a>\u00a0to provide health insurance coverage for at least 95% of their workers. The penalties for non-compliance are severe, both in tax penalties and government-related fines.<\/p>\r\n

Most employers provide some type of health care for their workers if they can afford to. After wages, medical expenses are one of the main concerns for employees\u00a0in today’s job market.<\/p>\r\n

Small business owners with fewer than 50 employees are not required to offer health insurance, but many want to. The Small Business Health Options Program (SHOP) helps small employers enroll qualified employees in affordable health plans.\u00a0<\/p>\r\n

Enrollment through SHOP lets small companies qualify for the Small Business Health Care Tax Credit. This lowers premium costs and makes the insurance more affordable for the employer.<\/p>\r\n

Forty-six states and the District of Columbia have adopted laws like the\u00a0ACA. The laws may require health insurance for businesses smaller than those indicated by the ACA. Business owners should verify their state laws with their insurance broker or attorney.<\/p>\r\n

Anti-Discrimination in Employment Health Benefits<\/h2>\r\n

When employers offer insurance benefits to their employees, they must follow the same\u00a0anti-discrimination laws<\/a>\u00a0that apply to employment. Employers may not base decisions on employees’ race, religion, gender, age, or national origin.<\/p>\r\n

When offering health insurance policies, there are other things employers cannot do. Employers must offer the same type of plan to all employees who are eligible for coverage. Employers cannot:<\/p>\r\n