Group Health Information
Group health insurance is a single policy issued to a group of people, offering uniform healthcare benefits to all members. In most cases, these policies are purchased by employers and offered to eligible employees and their families as part of an employee benefits package. Enrolling in group health insurance generally costs participants less than what they would pay for an individual healthcare policy for two main reasons:
- The risk is spread over the whole group, as opposed to just one individual.
- Many employers pay a portion of employees’ premiums.
What are the benefits of group health insurance?
For employees, the benefits of group health insurance include the reduced price of healthcare and the ease of enrolling through their employer. For employers, the benefits range from attracting quality workers to the tax credits they can receive.
Is your business required to purchase group health insurance?
Large businesses with 50 or more employees are now required to offer group health insurance under the Affordable Care Act. Small businesses with fewer than 50 employees are not required to offer coverage, but they can qualify for tax credits to help offset the cost if they choose to offer healthcare and pay for at least half of each employee’s premium.
Are there any ways to lower the costs?
For many employers, there is only the knowledge of having either one or two options. Most understand the option of a fully insured plans where there is a premium paid and the insurance carrier assumes all the risk above the employees exposure. The main source of finding savings is to compare similar plans or increase employees exposure. The other option is a self insured plan. This type of plan the employer assumes the risk up to a stop loss limit. This allows an employer to not lose everything in the claim pool should the group not use it. However, an employer could have a year where they could have a larger exposure compared to a fully insured plan. Now these are several options that are commonly known, however, there are additional options that can provide considerable more savings. Many of them can work in conjunction with fully insured or self insured plans, of which, some can even give you a good number to actually see what you can be saving. From concierge services, better administrating options, gap plans, etc. You owe it to yourself and your employees to look at all the options to see how they can benefit and save on your costs.
Contact us today for more information about group health insurance.