Group health insurance has many benefits. Besides providing medical care for yourself and your employees, a business health insurance plan helps spread the financial risk between all the members, which usually means lower premiums and more extensive coverage for both the employer and the plan members.
But group health insurance has tax advantages too. Employer contributions to a business health insurance plan are generally 100% tax deductible, and employees save on payroll taxes.
A group health insurance plan will go a long way to ensuring employee retention and employee attraction.
All businesses and some organizations (such as non-profits) are generally eligible for group health insurance so long as they can show three or more full-time taxable employees.
A business health insurance plan provides its members with a set coverage with rates calculated using their group data. Employees may be able to add policy riders and additional coverage to fit their specific needs, but the basic policy format will remain the same.
Likewise, although business health insurance offers variety, the format that's chosen will apply to all members.
Although rate calculations vary from company to company, the cost of a group health insurance plan is based on the characteristics of each member group, including:
Employees of a business that offers group health insurance are not compelled to join the plan, but the group must maintain a minimum number of insured (as few as 2 people, depending on the policy) to guarantee coverage. Rate of inclusion varies from company to company (75% or 100% of eligible members).
Group health insurance is less expensive than individual policies bound together, but it's not inexpensive. No healthcare is.
Depending upon the insurer, the employer will be required to pay some percentage of an employee's individual premium (often 25% or 50%). If the employee wants to extend coverage to a spouse or dependants, you may choose to pay a percentage of that cost, but that's not required. You'll have many policy and payment options to choose from, which we can help you determine.
This is a simple process for finding out what sorts of options are available to you. At no cost to you we shall find the best plan available for you.