Group Health Insurance

What do you need to know about group insurance?

The uniqueness of Group Insurance is that this insurance is offered to the employees by the employer.

According to Kaiser Family Foundation (KFF) data, in 2022 group insurance was chosen by:

39% businesses with 3-9 employees;

58% businesses with 10-24 employees;

73% businesses with 25–49 employees;

91% businesses 50-199 employees.

1. Employers can choose the percentage of the insurance premium they pay on employees behalf or do not pay for it at all.

2. This insurance can be offered the moment you are hired, or after the probationary period which is decided by the company.

3. A company with one employee may be also eligible for this insurance (family member does not count as employee unless it’s a partnership and not Corporation or LLC). If there are subcontractors, the company could offer group insurance for them as well.

4. Employers can offer not only health, but also dental, vision, long and short-term disability insurance and life insurance.

5. During the renewal period, if an employer decides to, it is possible to change the plan. If the employer is not making any changes, the employee cannot change his plan.

6. It is mandatory for businesses with 50 or more employees to offer group insurance. There is a penalty for disobeying this regulation.

Why is it beneficial for business owners to offer health insurance to employees?

1. Helps retain and attract employees. Everyone wants to work for a company that offers more than just an attractive salary. This is a great option for owners who want to maintain a good corporate image.

2. There are insurance companies that can offer wider plan choices for group plans rather than for an individuals health insurance.

3. Employees who check their health occasionally have a lower probability of getting sick and a greater chance of catching the illness before symptoms. The priority of every business owner is the highest quality of service, which can only be provided by healthy and energetic employees.

4. Employee health insurance is an expense that can be written off taxes.

What are the main types of group health insurance plans?

HMO

• Must select PCP and/or medical group;

• Must get a referral to see a specialist;

• Must stay in network;

• Harder to get a second opinion.

PPO

• Don‘t need to select a PCP and/or medical group;

• No referral is necessary;

• Not required to stay in network;

• Easy to get a second opinion.

Would you like to learn more about group health insurance?

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