What is Group Health Insurance?
Group health insurance is one health insurance policy that covers a group of people. The group covered can be a small business or trade associations that offer group health insurance to its members.
Business health insurance costs lower than individual insurance for a number of reasons. The main reason has to do with risk.
When health insurance companies write an insurance policy for an individual, they take on a significant amount of risk, especially if the person is older.
With group health insurance plans, the level of risk is spread out among many people. Some of those people will use the insurance less, while others will use it more. That lowers the overall costs to the insurance companies.
That results in a lower business health insurance rate for members of the group.
Group Health Insurance Plans for Small Business
Many small businesses aren’t required to provide health insurance to their employees. However, a business that does offer health benefits will see a number of benefits themselves.
The first benefit is a reduction in turnover costs. Businesses that don’t offer health insurance companies have higher turnover rates compared to businesses that do. On average, it costs about $15,000 to replace an employee.
The second benefit is that employees are happier and more productive. A more productive workforce means more revenue.
Just by providing insurance, you’re cutting costs and increasing revenue at the same time. That translates into a more profitable business.
Sharing Costs with Employees
There are many benefits to providing group health insurance to your employees. The challenge that many business owners have is figuring out how to pay for small business health insurance.
Instead of taking on all of the costs, many employers will choose to cover less than 100% of the premium costs and employees pay the rest of the premium. The employee’s share is withheld from their paychecks each pay period.
In the end, you get the benefits and you can defray some of the costs.
Why Having Group Health Insurance Is Important
One of the largest concerns for business owners with employees is paying insurance premiums. Employers know that to keep the best and brightest employees, they need to provide health benefits.
That’s why less than half of small businesses with less than 5 employees have health insurance. The statistics aren’t that much better for businesses with less than 500 employees.
If you want to offer the best benefits and retain the best employees, you should consider group health insurance.
What is group health insurance? Read on to find out.
Looking for Quote?
Being a business owner isn’t easy. One of the biggest challenges that businesses have is finding a way to keep employees happy and productive.
That can be done by participating in a group health insurance plan for small businesses. It’s an affordable way to provide a big benefit to your employees.
Request a quote today and get started with a group health insurance plan.