Shopping for insurance?

Although the smallest businesses, those with fewer than 50 workers, aren’t required to offer employee health insurance under the Affordable Care Act, many want to provide the benefit to staffers. Those hoping to offer coverage for the first time have a number of options, and probably plenty of confusion.

An owner’s first step should be to ask staffers about the insurance they want and need. That can help narrow the coverage search, and a boss will also know from the get-go how many people will likely participate in a plan — a factor in how much premiums cost.

Owners who are considering insurance through the government-run Small Business Health Options Program, or SHOP, marketplace should visit www.healthcare.gov/small-businesses/employers to learn more. They can find other coverage options on individual insurers’ websites.

Many owners work with a benefits broker who knows what insurance is available and can advise them about different plans. These brokers, also known as independent insurance agents, are paid commission by carriers; they get a percentage or a flat fee depending on their agreement with each insurer. Some companies use benefits consultants; the employer usually pays for the consultants’ services. Some consultants are also brokers receiving commissions from insurers.

After choosing plans, owners need to set enrollment periods during which employees sign up for coverage. Enrollment periods usually run for several weeks before policies go into effect.