Group Health Insurance

Why Get Group Health Insurance for Your Business

As an employer, what would be a reason to purchase Group Health Insurance for your employees? Well, besides offering your employees access to affordable health services, group coverage can also help your business with employee retention, tax benefits, and more. Let’s take a look at some of the reasons an employer might consider group health insurance:

• Better Access to Health Care
  • Employees who have health coverage through their company are in a better position to acquire medical care, including those preventive services that can help avoid more serious health problems down the road. Group health insurance encourages employees to actively maintain their health and increases the ease of access to services that would have otherwise been unaffordable.

• Manageable Costs and Financial Security
  • Group health coverage also ensures the costs for services will be more manageable. Insured employees are protected financially from burdensome debts that may arise from a major illness or injury. As we know, the need for medical services often arises unexpectedly, and the costs would have typically exceeded what most can afford to pay. Group health insurance combats this.

• Tax Benefits for your Business
  • Usually, any expenses an employer incurs related to health insurance (for employees or dependents) are 100% tax-deductible as ordinary business expenses, for both your state and federal income taxes. Beyond this, taxes tend to get a bit more complicated, but don’t worry — we can help you handle it!
  • As an employer, the Affordable Care Act offers small businesses healthcare tax credits to help offset the cost of insurance. To qualify for a tax credit of up to 50% of premium expenses for any two years, small business owners must pay at least half of employees’ healthcare premiums and have 25 or fewer full-time equivalent employees who earn an average of $50,000 or less a year.

• Higher Employee Recruitment and Company Retention
  • Generally speaking, companies that offer group medical insurance are able to see the following advantages:
    • Lower hiring costs
      • Hiring and training new employees costs money and takes times, however, having group health insurance helps not only recruit but retain talented employees.
    • Reduced Absenteeism and Decreased Health Risks in Employees
      • When employees don’t have health insurance, they tend to take longer to seek treatment. Healthy employees are less likely to injure themselves and more likely to perform their jobs well.
    • Improved Office Morale
      • Employees tend to be happier and more satisfied with their jobs when offered group health insurance. In addition, some employees may benefit tax wise and convenience-wise by paying premiums directly from their paychecks.

Group Health Insurance Plans

Group health insurance plans come in various types and offer different levels of coverage. As a business owner or a human resources professional, it is important to understand the different types of group health plans available to you and your employees. Here are some of the most common group health plans:

• Health Maintenance Organization (HMO) Plans: HMO plans require employees to choose a primary care physician who acts as a gatekeeper to specialist care. Employees must obtain a referral from their primary care physician before seeing a specialist. HMO plans usually offer lower out-of-pocket costs and premiums compared to other types of group health plans.

• Preferred Provider Organization (PPO) Plans: PPO plans offer more flexibility than HMO plans. Employees are not required to choose a primary care physician and can visit any healthcare provider within the PPO network. Employees can also see out-of-network providers, but at a higher cost. PPO plans typically have higher premiums and out-of-pocket costs than HMO plans. A PPO is considered by many as the best group health plan. It is superior to individual health insurance due to its health benefits.

• Point of Service (POS) Plans: POS plans are a hybrid of HMO and PPO plans. Employees can choose a primary care physician and receive referrals to specialists. However, POS plans also allow employees to visit providers outside the network, but at a higher cost. POS plans can be more expensive than HMO plans but less expensive than PPO plans. POS plans can also be used in conjunction with a Health Reimbursement Arrangement.

• High-Deductible Health Plans (HDHPs): HDHPs are becoming increasingly popular among employers. These plans have lower monthly premiums but higher deductibles. Employees can use a tax-advantaged Health Savings Account (HSAs) to pay for medical expenses before reaching the deductible. High Deductible Health Insurance coverage can provide a be a good option for healthy employees who don’t require frequent medical care. In terms of affordability group coverage with a HDHP makes a good deal of sense.

• Exclusive Provider Organization (EPO) Plans: EPO plans are similar to PPO plans, but employees are only allowed to see providers within the network. EPO plans offer lower premiums and out-of-pocket costs than PPO plans but do not offer the same flexibility. An EPO represents good value and thus a high-quality group health insurance plan option.

In conclusion, there are various types of group health insurance plans available, and choosing the right plan for your business can be challenging. It is important to understand the benefits and limitations of each plan and to consult with a reputable health insurance agency such as Florida Healthcare Insurance  to find the plan that best meets your needs and the needs of your employees.

Interested in group health coverage for your employees? Schedule a call today! 

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