What is group health insurance?

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:

1. The risk is spread over the whole group, as opposed to just one individual.
2. 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.

Contact us today for more information about group health insurance.

Common Group Health Insurance Questions:  

Who May be Covered Under Group Health Plans?  
All full-time employees must be offered group health insurance by their employer, and some part-time employees can qualify too. This insurance may also cover the employee’s spouse and dependents.  

How Does Group Health Insurance Work?  
Employers can purchase a single group health insurance policy with the insurance provider of their choice. Employees can then choose to sign up for group health insurance through their employer. The employees do not have a choice in who the insurance provider is, but they do have some flexibility in the type and amount of coverage they sign up for. The employee’s health data, plan usage and other private information remains confidential from other plan participants. 

How Do You Qualify for Group Health Insurance?  
Eligibility for group health insurance depends on the size of the business and the number of employees. Generally, businesses with 1-50 employees qualify for small business group health insurance. Most employees qualify either on the date of hire or after a certain probationary period of employment. 

Why Buy Group Health Insurance?  
Group health insurance is a great benefit to offer employees who don’t have an individual health insurance policy. Group health insurance spreads the risk and costs of health insurance between employers and employees. Therefore, it’s usually cheaper for an employee than paying out of pocket for their own plans. Plus, by ensuring that employees have access to benefits, your business can ensure that they will be able to get help when they need it and continue to feel well when they come to work. 

How Much Is Group Health Insurance?  
The cost of group health insurance is typically split between employer and employee. On average, businesses pay around $5,711 a year for group health insurance coverage. Keep in mind that this also depends on the number of employees and the amount of coverage you choose. Lalani Insurance Agency LLC is committed to helping you build the perfect group health benefits for your business’s needs. Don’t hesitate to work with us to get the optimized plans that are best for you.