Small business owners in California should be aware of several key aspects of medical insurance in 2025:
Key Points for 2025
- Rate Increases: Covered California has announced a preliminary weighted average rate increase of 7.9% for 2025. This increase is due to factors such as rising healthcare costs, increased pharmacy expenditures, and labor shortages.
- Financial Assistance: Despite the rate increases, there is robust financial support available to help small businesses and their employees afford health insurance. This includes state-enhanced cost-sharing reduction (CSR) programs and continued enhanced federal subsidies through the Inflation Reduction Act.
- Plan Options: Small businesses will have a variety of plan options to choose from, with 12 health carriers providing insurance across the state. Most Californians will have access to multiple carriers, ensuring competitive choices.
- Compliance: It’s crucial for small business owners to stay updated on new employment laws and regulations related to health insurance. This includes understanding the requirements for providing coverage and ensuring compliance with state and federal laws.
- Employee Benefits: Offering comprehensive and competitive health insurance benefits can help attract and retain top talent. Small businesses should consider the value of providing quality health coverage to their employees.
By staying informed and leveraging available resources, small business owners can navigate the complexities of medical insurance in 2025 and ensure they provide valuable benefits to their employees.
A Professional Employer Organization (PEO) can assist small business owners with medical insurance by negotiating better rates, handling administrative tasks, ensuring compliance with regulations, and providing access to comprehensive benefits packages.