Answer posted in Teams: When adding an employee from a company under common ownership to a plan, you’ll need to provide documentation proving the common ownership and consider the impact on insurance rates, especially if the plan uses composite rating.
Common Ownership
Common Ownership refers to situations where multiple businesses are owned by the same entity or individuals. In small group health insurance, this can impact the applicability of regulations like the Employer Mandate, COBRA, and the Medicare Secondary Payer Rules. Small businesses under common ownership may collectively meet criteria that apply to larger employers, thus changing their obligations and options in providing health insurance. Additionally, companies under common ownership may be able to covered under the same plan, but this isn’t normally required.