If you’re considering a group health benefits insurance plan for your company, it’s important to have all the information before you choose a plan. Group health plans provide benefits coverage to an employer group, usually comprised of company employees or members of an organization.
How Many People Do You Need?
When you buy group health insurance, you have to have a group. In other words, a single individual can’t sign up for this kind of plan. For small businesses there can be as few as two people in the group during the special open enrollment period. Otherwise, you need 70% participation, not including owners or spouses, from your company’s employees in order to get group insurance.
Why Is Group Health Insurance More Affordable?
Once the company chooses a plan, group members are given the option to accept or decline coverage. In certain areas, plans may come in tiers, where insured parties have the option of taking basic coverage or advanced insurance with add-ons. The premiums are split between the organization and its members based on the plan. Health insurance coverage may also be extended to the immediate family and/or other dependents of group members for an extra cost.
Group health insurance is sometimes lower in cost than an individual plan as the risk to the insuring a company is lower, since the plan is shared across more people.
What is Considered a “Small” Employer Group?
When we talk about small businesses in the context of group health benefits, a small employer is one that has from 2 to 50 employees. A sole proprietorship with only one employee (the owner) isn’t eligible, and if you have more than 50 employees you are considered a large group. The large group platform operates a lot differently than small group.
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How Does the Shared Cost of a Group Health Benefits Plan Work?
The cost of a group health plan is shared by everyone in the group, by the employer and employees. In other words, these plans sometimes cost less because there are more people in them. Also:
- With some groups, employees pay a portion of their own health insurance premiums
- To meet group health requirements, the employer must pay at least 50% of the employee health insurance premiums
Retaining talent is more important than ever. Showing your employees that you care about their well-being and by truly offering to help them by providing the option of group health and benefits insurance, this gives your employees one more reason to continue their career as part of your team.
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PS Here’s a few words from one client that trusts Stromsoe Insurance Agency:
“Dedicated to helping small businesses during these hard times. Great customer service and extremely knowledgeable in their products. Would highly recommend.”
Doris Hess – Relentless Brewing & Spirits – Los Angeles, CA – Client Since 2020
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