What is SEP? It is the Special Enrollment Period for Small Businesses with 1-50 Employees with the Affordable Care Act/Marketplace Healthcare. If you have a Small Business with less than 50 employees, you want to continue reading the information below.
The Small Business Special Enrollment Period (SB-SEP) is a little-known ACA mandate that requires carriers to offer a special enrollment period (SEP) without any participation or contribution requirements. This means zero participation (only one employee needs to enroll in the plan) and zero contribution (the employer may choose to contribute $0+ to the premiums).
Other, small group carrier underwriting rules still apply.
SEP offers a unique opportunity to offer Healthcare Coverage for yourself as a Small Business Owner and/or your employees at possibly $0 monthly premiums for you as the Owner and/or your employees depending on income.
As well, if premiums are included, as a Small Business those premiums may be paid with pre-tax dollars through a Section 125 Cafeteria Plan, hereby, lowering the taxes paid by both employee and employer, among other benefits. With SEP this presents the one time in a year that you can enroll new groups without the restrictions of affordability or employee participation.
Key Points for Small Business Owners:
The SEP ACA provision requires carriers to offer an annual, one-month SEP for small businesses.
The SEP runs from November 1 to December 15, 2021.
The plan effective date for groups enrolling under the SB-SEP will generally be January 1, 2022.
The SB-SEP allows small businesses to enroll in a group plan and waive the typical employer contribution and employee participation requirements.
To explore Special Enrollment Period options for your Small Business and provide Healthcare for the 2022 Benefit Year for you and your employees, book an appointment online to discuss with us today or contact us at MRW Solutions Group at 866-630-6338 as we service the states of Michigan, Ohio, New York, Virginia, South Carolina, Texas and Arizona.
Author: Monica Ross-Williams, MBA; LIA
Monica’s vision for Insurance Management Consulting includes building long-term trust with our clients.
With over 25 years of experience of exceeding expectations, Monica truly values the consultative approach for understanding Insurance.
Our business model core is summarized in the quote: “Do More Than Is Required of You” for each of our Clientele.
Connect with Monica on your Small Business Healthcare Coverage questions by contacting 866-630-6338 or 866-630-MEDU or book an appointment online to discuss today.