Group Eligibility
To be eligible for group coverage, an employer must:
 

• Be licensed to operate and have employees located in the state of Alabama.


• Have at least one employee enrolling in coverage who isn’t the owner, business partner, or spouse of the owner or business partner. An eligible employee is a permanent employee working on average a minimum of 30 hours a week as determined by the employer in accordance with the requirement of the Affordable Care Act (excluding independent contractors). A husband and wife who meet these requirements do not make up a group. See Documentation Requirements for a Two-Person Employer Group for more information.

Minimum Health Requirements
There are no minimum participation and no contribution requirements.

Income Tax Exempt
In rare situations, an employee may be exempt from Alabama income tax. In this case, a copy of federal Form 941, Employer's Quarterly Federal Tax Return, should be provided.

If Form 941 is not available, please contact Blue Cross for a list of alternate options.

Documentation Requirements for Two Person Employer Group
For companies with only two eligible employees, documentation is needed to verify group eligibility. A husband and wife do not constitute a two-person group

One of the following is needed:

1. A copy of Form A-1 or A-6 Alabama Department of Revenue Employer's Return of Income Tax Withheld. Form A-1 is used quarterly and Form A-6 is used monthly. Line two on each form shows the number of employees who had Alabama tax withheld from their wages.


2. For self-employed individuals, partnerships, or limited liability companies, a copy of Form A-1 or A-6 to report employee wages and Form 1040 schedule SE to report owner wages is needed. Normally partners or owners do not report their individual wages on Form A-1 or A-6. For a two or more person partnership, a copy of each partner's individual Form 1040 Schedule SE is needed.

Family Businesses
For two-person groups where a mother and father enroll on a family contract and a child above the age of 26 enrolls on a second contract, proof of full-time employment for each contract holder is needed. Acceptable forms of documentation are the previous year's W2, 1040 SE, K-1 or K-6. We cannot enroll a two-person group that consists of a contract for a dependent-age child and a contract for the child's parents.