As a small business owner, one of the biggest decisions you’ll make is whether to offer group health insurance to your employees. But what is group health insurance, and what are the benefits? Here’s a quick overview of group health insurance, and some things to consider when making your decision.
What Is Group Health Insurance?
Group health insurance is a type of health insurance plan that covers a group of people, usually employees or members of an organization. It’s typically offered by employers to their employees, or by organizations to their members. Group plans also typically have lower premiums than individual health insurance plans, and they often offer better coverage. That makes them a popular choice for small businesses.
When deciding whether to offer health insurance, there are several factors to consider. First, you need to evaluate your budget and see how much you can afford to pay for premiums each month. You also need to weigh the pros and cons of offering coverage versus paying out-of-pocket for employee healthcare expenses. And finally, you’ll need to decide which type of plan best meets the needs of your employees. There are several different types of plans, so be sure to do your research before making a decision.
How Does Group Health Insurance Work?
Both employers and insured individuals share premium costs associated with group plans, but typically, 70% participation is required for groups before a policy can begin. Employees may also choose to add family members and dependents at additional cost.
How Many Employees Do You Need to Qualify for Group Health Insurance?
To be eligible, a business must have a minimum of one full-time (or equivalent) employee who is not related to its owner or spouse.
How Much Does Group Health Insurance Cost?
Your business’ specific factors (age of employees, number of employees, industry, etc.) can affect the pricing of your plan.
The average annual premium for employer-sponsored plans was $7,911 for single coverage and $22,463 for family coverage according to the Kaiser Family Foundation’s 2022 Employer Health Benefits Survey.
How Do You Enroll In A Group Health Insurance Plan?
- Work with a licensed agent
Ready to find the plan that best fits your business needs? Enter your zip code above or call one of our knowledgeable, licensed agents at (877) 658-2374 for more information and personalized quotes.
- Work with health insurance providers directly
Connect with providers directly or leverage consumer review sites for insights into what companies you might qualify for.
- Join A Professional Employer Organization (PEO)
PEOs make competitive rates and additional services available – including payroll management, recruitment assistance and tax filings. Businesses can access the expertise they need at a price, but PEO services come at an additional cost, which can add up quickly.
- The Small Business Health Options Program (SHOP) Marketplace
Small businesses have the benefit of accessing The Small Business Health Options Program (SHOP) – a federal exchange database that makes it easy to compare and find health insurance plans in your state. Making use of premium credits available up to 50%, business owners can save on financial costs associated with their healthcare coverage, without compromising coverage quality.
Conclusion
Group insurance can be a major benefit to offer your employees, providing them with greater access to care while they remain loyal and dedicated to your business. It is a great way to invest in the people who help make your company succeed, allowing them to better maintain their overall health and wellbeing.
Aligning your financial goals with the values of providing good healthcare for your employees allows you to create an environment of trust and loyalty that will last well into the future. Consider all the factors, weigh in on what makes sense for you and generally could be beneficial for everyone involved. If this seems like the right move for you, call (877) 658-2374 or enter your zip code in the bar above to get a personalized quote and start comparing plans.