Most companies provide group health insurance to their employees. In fact, most Texans are either covered under the group insurance offered by their own company or by the company of their spouse. Some have the added advantage of being covered by group insurance by their own company as well as the company of their spouse. Group insurance varies depending on whether the company is classified as a small business company or a large business company.
Small Employer Plans: To be eligible for these plans the company should have between two to fifty employees. Also, these people should be permanent employees and not part time employees or those employed on contractual basis. They shouldn't be seasonal workers. In addition, they should not be covered be covered by any other individual health care plan. The plan is only applicable to full time employees who put in at least 30 hours of work per week.
To put it simply, your enterprise will be considered a small business employer under the Texas Insurance Law if the number of eligible employees is between two and fifty. This means that you may have sixty employees, but if ten of them are either part time, seasonal or substitute workers, then your company will qualify for small employer coverage.
Now, if your enterprise fulfils the above criteria, you can decide to offer a group plan to cover the eligible employees as also their dependents. Also, of all your eligible employees 75% of them should be ready to be part of the group insurance coverage. If there are only two employees, then 100% participation is required.
Now let us consider a situation where the two employees are husband and wife. In this case, they both will be treated as two separate employees. Also, they will not be covered under the dependent criteria.
You also must keep an important fact in mind, which is that an employee who quits the job is still eligible to be covered under the group plan, under the statutes laid by COBRA. But you do not have to pay their premiums. The former employees have to bear the cost of the plan.