health insurance small business
 

I'm in the process of weighing up whether or not to buy a small business (a nursery school) in the US, and to apply for a visa, etc.

The business in question is registered for 60 children, so when running at full capacity, would have about 12 employees. Would I, as an employer, be obligated to provide some kind of Health Insurance scheme for these employees, and if so, what would the financial implications be? What do other people with similar sized businesses do?

Any advice would be much appreciated.

Re: health insurance small business
 

you're not obligated.

Re: health insurance small business
 

No. But if you don't, expect to find yourself 12 staff lighter. There should be a small business solutions provider in your are that does all sorts of benefit things based on members buying into plans rather than the individual company having to do it. Cost could be pretty much anything depending on what plans you go with and how much of it you pay.

Re: health insurance small business
 

A lot of childcare workers do not have health insurance cover through their employer as it may not be cost feasible. Certainly you'll have the best pick of employees if you are able to offer this benefit. How much per month do the parents pay for their children?

Some of the workers might opt out of paying for coverage if they are covered under their spouse's plan. You would then be left with too small a group for a policy. However, it may well be worth doing because you've got to provide for your own health insurance.

Re: health insurance small business
 

I smell E2. :eek:

Re: health insurance small business
 

At least not a dozey one; see past posts. :)

Re: health insurance small business
 

At the moment the parents are paying $200 a week, which is really really low in comparison to London nursery fees. On the other hand, the overheads are comparatively low if you don't factor in health insurance (and I have no clue what that will cost). I will look into a small business soultions provider - thanks for the heads up on that.

I spoke to an immigration lawyer today who said I would be eligible for either an E2 or L1 visa based on the fact that I have two other nurseries in the UK that will continue to operate.

I just have to work out whether it's worth it. I certainly don't want to make a loss on the US business ...

Re: health insurance small business
 

as a percentage of the disposable income of the parents, it's probably the same is London nursery fees though.

Re: health insurance small business
 

In the Cleveland OH area, there's an outfit called COSE that provides solutions like that. Look for something similar in the region where the nursery is. COSE link.

Re: health insurance small business
 

Depends on the exact location.... my brother and SIL pay over $1000.00 per month for my niece, who's still under three. If in NYC/LA/SF/Silly Valley, I'd bet it would be more.

In 1992 I paid - $350.00 per month. :eek: I felt that was too low and I gave generously for extra equipment, staff bonuses, etc.

Re: health insurance small business
 

She was looking in Minneasota.

Re: health insurance small business
 

We're going to be paying $190 a week for a newborn, the prices go down depending on the age. That's not so high comparatively, $170-250 a week is the norm around us. However, that pretty much includes nothing other than the kid being taken care of and a crib, everything else we have to provide. I thought they were taking the piss when they quoted the price, after I said "that's not bad for a month." I would imagine that the cost would be significantly different if you compare New York city, podunkville Kentucky and where we are.

Re: health insurance small business
 

If you're "moving" to the US, far better on an L1 than an E2.

Re: health insurance small business
 

Thanks for the COSE link - it's really useful.

In my London nurseries, the parents pay per term rather than per month because they operate on a school year basis. For a full time place the fees are just short of £10,000 per year, so you can see this is substantially different to the US model (which is in Minnesota). Both my London nurseries are full, but even so, I can't afford to live there!

I'm working on the assumption that the cost of living in Minnesota (even factoring in health insurance) will be much lower. If it isn't, I ain't bothering!

Re: health insurance small business
 

Here outside of Manhattan the starting price for one child, still in diapers, is $1200 a month and drops $200 when diapers are no longer needed. Plus you supply the diapers, formula, toys, baby food, etc.

Re: health insurance small business
 

Hi DeepBlueSea
I run a business in the US and although not obligated to do so, I do provide health and dental at 100% coverage by the company. I decided to do it as I myself had been so freaked out by healthcare when I arrived, I didn't want my staff having that worry. The loyalty and retention it has developed amongst my team is fab and I wouldn't have it any other way! :thumbsup: Having said that, I did look at reducing the 100% company cost during these rather volatile economic waters (which I didn't do in the end), but the minimum I would have been able to drop it to would have been a 50% contribution. I pay on average about $250 a month per staff member for health, and about $25 on dental. We have a $5,000 ER deductible but all other co-pays are reasonable. About $30 to see a Doc and about the same for prescriptions. It's treated us all well so far. It's with Humana, who you'll be able to check out online. Hope this helps you get your head around figures a little bit more.

Re: health insurance small business
 

ukintexas - Thanks so much for this - it's really helpful. $250 a month per employee is manageable. Do you include yourself in the scheme as a company employee?

I'm very much cheered by this. I had convinced myself that the figures would be closer to $1000 per staff member.

Re: health insurance small business
 

Medical insurance is assessed based on age and zip code of employee - at least it is here in California (probably one of the more expensive states) for 9 employees we pay a total of $5,541 .. although each employee pays 25% of their premium through payroll deductions, so a net of $4,617.75.

We pay 100% for the owners, one of the owners and his wife are both over 60, their premium alone is $1,259.00 a month.

We are a small employer of 13, and the medical insurance we offer is Blue Shield HMO. If an employee want to chose PPO then they pay the 25% plus the difference between the HMO and the PPO premium.

HTH

Dawn

PS: Don't forget you'll need workers compensation insurance, ours is approx $3,800 a year .. yours might be a higher classifcation (i.e., employees more at risk of injuries and accidents) since our office is purely sedentary. You'll also need liability insurance.

Re: health insurance small business
 

In Mass he would be with over 10 people...it could still be utter spank though.

Re: health insurance small business
 

where is this place? that's about half the going rate for part time where I"m at.

Re: health insurance small business
 

I think he said Minnesota.

Re: health insurance small business
 

oh well, you can't have everything lol

Re: health insurance small business
 

You can also look into the plans offered through your local Chamber of Commerce. Some of those use the Chamber Members to create a sizable group insurance plan.
I run a small business in Connecticut (capital Hartford - the insurance center) our insurance rules are a bit different from the rest of the country...
Head, feet, eyes and teeth may not be covered!