Around one in four Americans have avoided care or treatment due to health insurance confusion. Getting a solid understanding of health insurance and how it can help you starts with knowing the different types of health insurance, such as group health insurance.
If you’re not sure what group health insurance is and how it differs from other types of health insurance, take a look at this concise guide.
What Is Group Health Insurance?
Group health insurance is a medical insurance policy offered to employees of a company or members of an organization. So if you have a job, your employer likely offers a group health insurance plan.
The cost of insurance is lower for the employee because the employer pays for part of the policy. Plus, the cost of insuring a group of employees is lower because the insurance package offers less risk for the insurance company.
Groups aren’t as risky to cover compared to individuals because a group’s risk is pooled. This means that larger groups offer a lower risk total than smaller groups.
Plans also come with group coverage tiers, add-ons, and other customization options.
Group Health Insurance Benefits
As we mentioned, group health insurance is more cost-effective for both employees and employers. Beyond this significant perk, there are other benefits you should be aware of for both employees and employers:
Access To Better Plans
Employees who opt into group health plans under their employers are more likely to afford a better, more expensive policy. Since part of the policy gets paid for by the employer, employees can consider policies that were otherwise not affordable as individual plans.
Keeping employees prepared for potential health concerns is a great way to keep your workforce happy. Employees without insurance may ignore big health concerns or spread an illness to their co-workers.
In the event that your employees need attention from a health professional, offering a group health plan ensures they get back to work.
A small company that offers group health plans can get tax breaks in the form of credits. So even though employers have to pay for a part of each employee’s policy, these tax credits offer compensation for it.
Increased Employee Retention
If employees feel a sense of security and peace of mind at your workplace, they’re more likely to stay. Having a good group health insurance plan motivates employee loyalty. A good health insurance policy also prevents rapid employee turnover. Since plans cover dependents, employees can also get health coverage for their entire family.
Making Health Insurance a Group Effort
Group health insurance policies work well because it involves a team effort. Employers gain happy and healthy employees, while employees gain the peace of mind of good health insurance when they need it.
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