What % Does a CA Employer Needs to Pay for Group Health?
- Thread starter dorado
- Start date
-
- Tags
- group health
- 4,707
This should probably be moved to the "Employee Benefit Forum".
The minimum employer contribution towards the employees cost will vary from company to company.
On small group, 2-50, generally, the mininum employer contribution is 50% of ee cost.
The minimum employer contribution towards the employees cost will vary from company to company.
On small group, 2-50, generally, the mininum employer contribution is 50% of ee cost.
- 15,319
I agree with Sayer IV.
Of course, when an employer asks how little he can pay you can be sure there can be problem with having enough of his employees opt for an expensive group plan.
Rick
Of course, when an employer asks how little he can pay you can be sure there can be problem with having enough of his employees opt for an expensive group plan.
Rick
- 4,707
There in lies the problem. If the employer is only contributing a minimum amount, you probably won't meet the 75% of eligibles to enroll. Thus, group will not be approved.
- Thread starter
- #5
Thanks for the answers, I should have posted this on the Employee Benefits section. In this case, I just want to know all the facts so I can relay to my client who is buying a shop in CA. She told me she wants to offer health insurance to the employees, she might pay 100%, but I need to tell her what is she required.
Thanks again!
Thanks again!
- 3,384
If the group is 2-50, generally 50% ER contribution is required. Some carriers allow defined contribution normally not less than $100 or $150 per employee in lieu of % contribution.
Tell her to be careful about using a stop-loss plan for small group right now in CA. It is available to self-fund in CA with attachment points as low as 10k (and lower). BUT..................
SB 1431 is working it's way through the state Senate right now (De Leon) which would raise the attachment point to $95,000 per subscriber (EE and dependents individually).
Word is that they have had to go back and review the attachment point and it may be lowered from the $95k, but I would not expect it to be too much lower.
Tell her to be careful about using a stop-loss plan for small group right now in CA. It is available to self-fund in CA with attachment points as low as 10k (and lower). BUT..................
SB 1431 is working it's way through the state Senate right now (De Leon) which would raise the attachment point to $95,000 per subscriber (EE and dependents individually).
Word is that they have had to go back and review the attachment point and it may be lowered from the $95k, but I would not expect it to be too much lower.
Last edited:
- Thread starter
- #7
Let me know if you need any help. I work the small business 2-50 employee groups here in So. Cal.
- Thread starter
- #9
