Hawaii Large Business Group Health Insurance Plans
Find the right health insurance plan that fits your large business by giving your employees the coverage they need.
What is a large business?
The definition of a large business varies among each state. Here in Hawaii, a large business is defined as a company that has 51 or more full-time equivalent employees. Under the ACA, a full-time employee is anyone who works 30 or more hours per week. In Hawaii, under the Prepaid Health Care Act, a full-time employee is anyone who works 20 or more hours per week for four consecutive weeks. Part-time employees are included in this calculation. For example: If you have 3 employees each working 20 hours per week, this counts as 2 full-time employees.
Do I as an employer need to cover my employees?
Yes. Under the state’s Prepaid Health Care Act of 1974, large businesses are required to offer affordable health insurance to their employees who work 20 hours or more a week for four weeks in a row (with some exception). Employers must contribute at least half of the employees’ premiums for single coverage. The employee can contribute the rest, but at no more than 1.5 percent of their wages.
Essential health benefits (EHBs) are prescription drugs, ambulance service, emergency care, hospitalization, laboratory services, maternity and newborn care, mental health and substance use services, pediatric oral and vision services, rehabilitation and habilitative services, services for preventive care, wellness, and chronic disease management. If any large business offers any EHBs, those benefits’ out-of-pocket limits are $6,000 for individuals and $13,200 for a family in 2015.
Remember to report the value of your employees’ benefits on their annual W-2 form, and report your employees’ minimum essential coverage annually to the IRS and your employees.
Speak to a Proinsurance Hawaii specialist today to find out more about the requirements – small and large businesses have different benefits that they are required to provide employees.
What are the most common large business group insurance plans?
Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), Point of Service Plans (POS), and Health Savings Accounts (HSAs) are the main healthcare plans that offer a mix of features. These managed care plans pay doctors or hospitals directly for some or all the costs of the medical services you may receive.
To learn about these plans and how group insurance can work for you, give Proinsurance Hawaii a call today. Our trained agents can answer any questions you may have and get you started on the process of finding the right plan.