Around half of all Americans receive health insurance from their employer.
If you’re a small business owner and you want to offer your employees health insurance, you’re taking a huge step towards improving your business. The better you treat your employees the better they’ll treat you in return.
If you’re interested in purchasing insurance for your team, keep reading to learn about small group insurance!
What Is Small Group Insurance?
Small group health insurance is the insurance provided to the employees of a small business.
To qualify for small group insurance, a business should have less than 50 employees in most states. Some states will let companies with less than 100 employees qualify.
There are a few different resources a small business can use to get small group insurance. They can go through:
- Insurance companies
- Private exchange
- Broker
Using insurance companies is one of the easiest and most common ways to get small group insurance.
How Small Group Insurance Works
Before diving into a small group insurance plan, there are a few things you should know.
First of all, you have to have at least one employee to use small group insurance. So, if you’re an independent contractor or a freelancer, you’ll need to purchase a different type of health insurance.
If you’re providing small group insurance to your staff, you’ll be responsible for contributing to your employees’ premiums. This is the fee you pay for having the small group insurance available.
If you decide as a business that you can’t afford to offer health insurance to all your employees, you can cancel the plan at any time. Also, your business is pretty much guaranteed to be approved for the insurance as long as you follow the size requirements.
This means you can’t be turned down if any of your employees have pre-existing conditions.
Small-Group Insurance Benefits
There are quite a few benefits that come with offering your employees health insurance.
Here are a few:
- You’re attracting the top talent
- Lower turnover rate
- Small group insurance is less expensive than paying per person
Employees are much more likely to commit themselves to a business that has their health and interests in mind. If you’re offering pay or benefits that aren’t appealing to your team, fewer people will be willing to commit themselves to your business.
It’s been proven that employees who feel appreciated work harder and offering great benefits are a way to show your appreciation. If your employees feel that they have a great opportunity with your business, they’re less likely to switch jobs.
The lower your turnover rate is, the more money you’ll save as well. It costs money to train employees and they aren’t able to actually do work yet. Keeping the same employees for years will create the most efficient system.
Are You Ready to Invest in Small Group Insurance?
If you have a small business with less than 50 employees, small group insurance is a great option.
When your employees are happy, you’ll be happy! If you’re ready to talk about small group insurance plans, reach out to us today.