Group Policy Through Shop

[Abctx]

Can someone please help me.
I have client asking for group coverage. She and her husband own a business and they file under a LLC corporation. Can her family get group coverage under their business corporation even though there's only two of them working as employee. I've never done any group policy. She told me that she has a friend similar to her and they get coverage through purchasing group coverage.
Any feedback would greatly appreciated!!

 

[STIBROKER]

Can someone please help me.
I have client asking for group coverage. She and her husband own a business and they file under a LLC corporation. Can her family get group coverage under their business corporation even though there's only two of them working as employee. I've never done any group policy. She told me that she has a friend similar to her and they get coverage through purchasing group coverage.
Any feedback would greatly appreciated!!

well if you are in texas you can now write husband and wife two man groups......

 

[rcduggan]

i am not 100% sure about state laws here but in california, the answer is no.

Definition of owner-only

Under the ACA and California regulations, beginning January 1, 2014, small businesses must have at least one "common law" employee who isn't the owner or owner's spouse (or domestic partner) to be eligible for small group coverage. As a result, the following will no longer be able to renew under a group plan:
Owner-only businesses — This is a business that's owned and operated by an individual and that has no common law employee (an employee with a W-2 who is not an owner, spouse, or domestic partner and is listed on your DE 9C).
Husband/wife businesses — This is a business that's wholly owned and operated by one or both spouses and that has no common law employees.

 

[kgmom219]

i am not 100% sure about state laws here but in california, the answer is no.

Definition of owner-only

Under the ACA and California regulations, beginning January 1, 2014, small businesses must have at least one "common law" employee who isn't the owner or owner's spouse (or domestic partner) to be eligible for small group coverage. As a result, the following will no longer be able to renew under a group plan:
Owner-only businesses — This is a business that's owned and operated by an individual and that has no common law employee (an employee with a W-2 who is not an owner, spouse, or domestic partner and is listed on your DE 9C).
Husband/wife businesses — This is a business that's wholly owned and operated by one or both spouses and that has no common law employees.

Texas DOI issued a directive last week that basically said "do these again OR ELSE".

We can once again do 2 person groups with husband as ee #1 and wife as ee #2.

 

[rcduggan]

Texas DOI issued a directive last week that basically said "do these again OR ELSE".

We can once again do 2 person groups with husband as ee #1 and wife as ee #2.

hey i believe you guys, in CA it's more strict. per our SHOP underwriting guidelines:

"Note that all groups must have a W-2 employee that is not the owner or a relative of the owner."

 

[Abctx]

Thank you everyone for your input, greatly appreciated!

Kgmom219. do they have to pay out a w-2 form for both of them in order to qualify ? is there any other proof or requirement they need to be met??

Thank you so much

 

[YouGotMyMoney]

The most important question is not being addressed! What is the comp for a group of 2? $0 - $2 per member per month? LMAO

 

[LostDollar]

The most important question is not being addressed! What is the comp for a group of 2? $0 - $2 per member per month? LMAO

+ other business + referrals.

 

[kgmom219]

The most important question is not being addressed! What is the comp for a group of 2? $0 - $2 per member per month? LMAO

In TX, they can't lower comp based on group size in the Under 50 market. So either 4 or 4.5%, depending on carrier

 

[FLM2]

The most important question is not being addressed! What is the comp for a group of 2? $0 - $2 per member per month? LMAO

It is the same as 4+ in some states, including TX, GA and CA.

Taking business for almost no compensation in the hope of referrals and add on business is a good way to go broke as an insurance agent.