Paying for medical care can be a real challenge for individuals and families, which is why many employees choose their workplaces based on whether or not they offer group health insurance. This type of insurance plan provides coverage to a group of members at a reduced cost, since the risk to the insurance company is shared between multiple policy holders. Both employees and employers see benefits from utilizing group health insurance, including tax advantages and lower premiums.
How Do Companies Get Group Health Insurance Plans?
Companies that want to offer group plans for their employees work with brokers to find options that they feel are the right fit for everyone paying into the plan. Typically, companies will let their workers decide if the chosen plan (or plans) provides the coverage they want. In some cases, an employee may decline to participate in the group insurance plan. For a group health insurance plan to be valid, at least 70% of a company’s employees must agree to participate.
Some group insurance plans allow for tiered coverage, giving employees the chance to decide whether they want basic coverage or more extensive options, with varying associated costs. Coverage may apply to the employees themselves or may include extended family members.
What Is Included in Group Health Insurance?
The insurance coverage an organization decides to offer in its group health insurance plan often depends on the needs of its employees. Basic plans may offer only high deductibles or emergency medical coverage, while more comprehensive plans may include dental and vision care, as well as a wide range of medical services. Usually, management will work with employees to find a group plan that fits the majority of the members’ needs, using tiered options, if necessary, to get the greatest number of employees to participate.
How Is the Cost of the Plan Shared?
Employees want group health insurance as part of their benefits package due to the opportunity of shared costs. Instead of paying for individual coverage, they can take advantage of lower rates due to the structure of a group plan. The cost is shared between everyone participating in the plan, as well as the employer.
Typically, employees will pay a portion of their premiums, with the employer contributing the rest. This allows both parties to benefit as the overall cost is lower due to the number of members and the reduced risk to the insurer.
Enjoy the Benefits of Group Health Insurance
For businesses of all sizes, group health insurance plans are the most affordable offerings for your employees. Providing a benefits package that helps your employees and encourages them to stay with your company may be exactly what your business needs. In addition, you may attract workers who are able to pay for health insurance on their own. Additionally, available tax credits (when applicable) can help offset the expense of providing a group plan.
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