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Answers to Frequently Asked Questions by Small-Business Employers
(1-49 employees)
We suggest offering all plan options to your employees. We offer our Basic Plan, Mega Plan, and MVP Plan. Our most popular selection is the Mega Plan. These plans are set up to offer coverage and price range for employees that may have different health care needs within the same company. The main choice an employer needs to consider on an employee’s election form is the amount of contribution toward the different benefit plans. If you have additional questions, please contact us at Admin@starmedbenefits.com or our toll-free line at (888) 616-2131.
The Affordable Care Act (ACA) regulation does not apply to small businesses (employers with 49 or fewer full-time employees) in the same way that it applies to Applicable Large Employers (ALE) with 50 or more full-time employees. StarMed Benefits’ programs are, however, bound by the laws of the Employment Retirement Income Security Act of 1974 (ERISA). This ERISA legislation requires self-funded benefits be employer sponsored. We encourage the employer to pay the full Basic Plan contribution; however, the minimal employer contribution is at least 50% of the Basic Plan per employee, per month. An employer is free to increase their contribution amount at their discretion. Employees who choose to participate in plans with fewer than 50 employees will be required to have tax forms provided to them and to the IRS. StarMed Benefits will assist in the preparation of these forms with the employer.
For an employer of 49 or fewer full-time employees, offering healthcare coverage is not mandated by the Affordable Care Act (ACA) at this time. However, the Employment Retirement Income Security Act of 1974 (ERISA) governs self-funded benefits that are offered through StarMed Benefits. ERISA proposes plans be employer sponsored, and a contribution from the employer on behalf of the employee has been set at 50% of the Basic Plan per active employee, per month, at StarMed Benefits. Additionally, if health care benefits are offered to any one employee of the company, they must be offered to all eligible employees at the time they become eligible for health care coverage (by their 90th day of employment). If the company grows in size to exceed 50 full-time employees or the equivalent thereof (6,000 monthly hours), guidelines from the ACA will then apply.
Absolutely! Our health care plans can be offered to both full-time and part-time employees at the discretion of the employer. Please be aware that once a benefit plan is elected during open enrollment, that plan must be maintained as active until the following open enrollment occurs during the next calendar year. The only opportunity for an employee to downgrade or change their coverage with StarMed Benefits during the calendar year would be after a qualifying event such as birth, marriage, death or divorce in the family, or if an employee is terminated from the company.
Employers log into the employer portal and update their monthly employee census by the 24th of each month. StarMed Benefits generates and sends out a monthly invoice based on the updated census. Payments are processed by ACH withdrawal prior to the 10th of the month. Employers should review their online invoice and contact StarMed Benefits with any changes by the 1st of the month to avoid any errors in the billing and payment collection process.
If you have decide to choose another health care partner to take care of your benefit needs, StarMed Health Benefits requires a 30-day, written notice with explanation for termination of services. Please send any cancellation notices to Admin@StarMedBenefits.com.
Our online enrollment process is easier than ever to navigate. Simply visit the StarMed Benefits homepage and click on the “Enroll now” button. Enter your contact and tax information as requested on the first page and click “continue” to proceed to the election process. Note, if you currently file your taxes under an EIN number, please provide this number so we can appropriately issue your relevant health care tax forms at the end of the year. On the second page of enrollment, enter “Company Code: INDIVIDUAL” to generate the pricing options. Then select the health care options that are best suited for you and your family. The third page of enrollment allows you to set up your online auto-draft for your monthly payment. At this time, only ACH bank-authorized transactions are available for payment options. No credit card payments are permitted.