Group health insurance is one of the top benefits employees consider when deciding whether to accept a job offer. As an employer, especially if you run a small business, you may be wondering why you should offer group health insurance to your employees. Read on and we’ll tell you why!
What is a group health insurance plan and how do they work?
Group health insurance plans are designed to cover a group of members rather than individuals. The company purchases the policies from an insurance provider and offers employees the option to enroll. The employees typically split the cost of the premium with the employer. By insuring members as a group, both the employees and you, their employer, save on costs, premiums, and deductibles relative to individual medical plans.
What are the benefits of group health insurance?
The biggest benefit of a group health insurance plan is the cost. The larger the pool of employees that are enrolled on a plan, the lower the premiums and deductibles can be. This is because of pooled risk, meaning a larger group of people has a lower total risk than a smaller group. This can help employees afford insurance who possibly could not afford an individual plan. Additionally, group health plans are easy to find and familiar to employees.
Why choose a group plan?
Today’s workforce expects more from their employers in terms of benefits packages and, in most cases, employees see healthcare as a core part of the compensation package. Companies that offer affordable and comprehensive group health plans tend to attract and retain top talent versus employers who do not. Another reason to choose a group health insurance plan is price. In general, group plans cost less—both for employers and employees.
How many people do I need for a group health plan?
If you’re interested in a small business group plan, you only need two employees to purchase a group health insurance plan. For larger businesses with 50 or more employees, guidelines are little different. You’ll need 70% of your workforce (not including owners, spouses, or their dependents) in order to shop for a group health plan for your business.
Can I get a tax credit for group health insurance?
If you’re an employer offering group health insurance to your workforce, you might be eligible for a federal tax credit. This credit can be up to half of what you pay in premiums. Providing insurance for your employees and their dependents can be expensive, but tax breaks can help.
Ready to offer your employees group health insurance? At Kamm Insurance Group, we are happy to work with you to find the best options for you and your employees. Reach out to one of our benefits advisors to get started!