How long does it take to set up a small business health insurance plan?

Once you have done some research and consulted with a licensed health insurance broker, how long does it take to set up a small business health insurance plan in NY?  We get this question a lot from new clients and our consistent response is always the same. We can set up a group in as little as one day, but best practice would be to give yourself a good 3-4 weeks.

While the plan setup and implementation are the final steps in the process, it is important to note the initial steps that should be taken so you are fully informed of all the options and carriers available to your small business. In a prior blog post on How to Research Small Business Health Insurance Plans in NY, we discuss the initial steps you should take in the research process. Following these crucial steps first will allow you to narrow down your choices to a workable number. You will know why you are focusing in on a few carriers or networks and not the entirety of available options. Trust us, these first steps are your most important ones in the process.

Your next step, if you have not done so already, is to reach out to a NY health insurance broker to assist you in further narrowing down your choices and help you come up with a plan or plans that work for your company. In our prior article The Benefits of Using a Broker for Purchasing Health Insurance, we explain the ‘no brainer’ reason you must team up with a reputable health insurance broker…not the least of which is they are FREE to use!

So now you have followed all the above steps. You did your research on providers. You called and started to work with a health insurance broker (call 631-207-1800 or email us, we can help!). You have gone over options and decided on a plan or two to offer your employees. Now what?

This depends on the carrier you select, but in general you will have to do the following to apply for coverage. First, you will work with your broker to create and send out an enrollment kit to your employees. This would consist of plan benefits, rates, and an application. You would then set a time period for your employees to return their election forms to you or the contact in your firm who will be handling the health benefits. Once returned, you would email over the completed employee applications to the broker.  The broker usually can complete the online group master application that same day and subsequently upload the employee applications to the carrier site. You will also send over any tax documentation (NYS45, K1s) to prove eligibility. The broker will also arrange for the initial payment to be made online as well.

Once the group and employee applications are submitted electronically, the usual turnaround time for group approval is about a week, give or take a few days in either direction. From there, employee ID cards and a welcome letter are generated by the carrier and mailed to the employee’s home addresses. Future month invoices are usually mailed out to the group 2-3 weeks prior to the next month’s premium due date.

Thank you for your interest in the setup time for a new group health insurance plan. We work with small businesses in NY, Long Island, and NYC and would be happy to help you and your company choose a quality health insurance plan. Let us know if you have any questions. If you wish to get a quote, simply complete out online form to request information for your group.