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Common Ownership

Posted: June 17, 2020 by Staff Writer

Aetna

Guidelines

Groups who have more than one business with different TINs may be eligible to enroll as one group if the following are met:

  • One owner has controlling interest of all businesses to be included
  • Companies that are affiliated and that are eligible to file a combined income tax return for purposes of state taxation shall be considered one employer
  • All groups filed under one combined tax return are considered one group
  • There are 100 or fewer employees in the combined groups
  • Business with equal controlling interest may be considered if the owners of the company designate an individual to act on behalf of all the groups
  • A completed Common Ownership form must be submitted
  • Underwriting reserves the right to final underwriting review and may consider common ownership on a case-by-case underwriting exception

 

Anthem BlueCross

Guidelines

Companies that are affiliated and eligible to file a combined tax return for purposes of state taxation
shall be considered one employer
A letter from the employer’s CPA which states the groups are eligible to file consolidated tax returns
is required
Common ownership groups must meet the definition of a small employer when combined

 

Blue Shield of California

Guidelines

Copies of all associated Articles of Incorporation, Partnership Agreements
Letter from the employer’s CPA stating that all business entities are eligible to file a
combined state tax return
Common ownership groups must meet the definition of a small employer when combined

 

CaliforniaChoice

Guidelines

Each company must share a minimum of 50% common ownership
Companies must have a related industry (The groups would be able to file payroll taxes
jointly)
The total number eligible for all combined groups may not exceed 100
Completed Common Ownership Statement
Proof of related industries may be required by the Underwriter

 

Health Net

Guidelines

Small employers qualified to enroll as a single employer are required to submit a letter from a CPA
certifying how they are eligible
The CPA must not be an owner or employee of the groups seeking coverage
The letter must be on CPA letterhead and it must explicitly state how the groups are eligible to
enroll under a single policy
Allowable reasons for how common ownership groups are eligible to enroll under a single policy:

  • Affiliated companies that are eligible to file a combined tax return for state taxation
  • Controlled groups of corporations
  • Trades and businesses, whether or not incorporated, under common control
  • Affiliated service groups

Common ownership groups must meet the definition of a small employer when combined

 

Kaiser Permanente

Guidelines

Business entities that are affiliated and eligible to file a combined tax return for purposes of state
taxation will be considered 1 employer and must apply as 1 employer
Common ownership groups must meet the definition of a small employer when combined

 

UnitedHealthcare

Guidelines

Copies of the filed/stamped Statement of Information reflecting all officer/owners, or signed/dated
Partnership Agreements listing all partners’ names
A letter from the employer’s CPA stating that all business entities are eligible to file a combined tax
return
Submission of a completed and signed Common Ownership Certificate form




This guide has been created as a quick reference and does not replace the full underwriting guidelines published by each carrier
Please refer to the carrier guidelines for additional information

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