Business Health Guide for Alabama

Written By Jerdon Johnston

Business Owner Guide for Alabama

Healthcare Options for Your Business & Employees in Alabama

As a business owner, offering health benefits can improve employee retention, productivity, and overall satisfaction. Whether you run a small business or a larger company, here’s a breakdown of healthcare options available in Alabama.

Who Needs This Guide?

  • You own a business and want to provide affordable health benefits.

  • You need to understand employer healthcare obligations.

  • You’re looking for cost-saving strategies for offering insurance.

 

Healthcare Coverage Options for Employers

1. Small Business Health Options Program (SHOP)

  • Who Qualifies? Small businesses with 1-50 employees.

  • What It Covers? Employer-sponsored ACA-compliant plans.

  • How to Apply? Visit healthcare.gov/small-businesses.

2. Group Health Insurance Plans

Many private insurers offer group health plans for businesses of various sizes. These plans often provide better rates and broader coverage than individual plans.

3. Health Reimbursement Arrangements (HRAs)

HRAs allow businesses to reimburse employees for medical expenses, including health insurance premiums. Options include:

  • Qualified Small Employer HRA (QSEHRA): For businesses with fewer than 50 employees.

  • Individual Coverage HRA (ICHRA): Allows employers to contribute toward individual health plans.

4. Self-Funded or Level-Funded Health Plans

Larger businesses may choose to self-fund their insurance, taking on financial risk in exchange for potential cost savings.

Legal Requirements for Businesses

✔ Employers with 50+ employees must offer health insurance under the Affordable Care Act (ACA) or pay a penalty.
✔ Employers with fewer than 50 employees are not required to offer insurance but may qualify for tax credits if they do.

Cost-Saving Strategies for Employers

💰 Small Business Health Care Tax Credit – Available for companies with fewer than 25 employees offering health coverage.
💰 Wellness Programs – Lower premiums and improve employee health.
💰 Telemedicine & Supplemental Benefits – Reduce overall healthcare expenses.

Where to Get Help

  • Tsunami Advisors – Get expert recommendations for cost-effective coverage.

  • Alabama Health Exchange – Explore employer-sponsored plan options.

  • IRS Small Business Tax Guide – Learn about tax credits and compliance.

➡ Need Guidance? Speak with a Tsunami Advisor to create a healthcare strategy tailored to your business!

 
Jerdon Johnston
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