In 2019, the average American workers contributed $6,015 towards their health coverage. This is in addition to the $14,500 their employers paid to provide the insurance.
If you’re looking for a better and more affordable option to traditional insurance, you’re not alone. In fact, many in your position are turning to small group insurance for themselves and their employees.
What is small group insurance, and how do you know if it’s the right fit for your business? Read on for five little-known facts about small group insurance.
1. There’s More Than One Type of Small Group Insurance
If you think you need to turn to a major insurance company to get lots of coverage options, think again. Small group insurance providers typically offer these types of plans:
- HMO (low out-of-pocket costs for in-network providers)
- PPO (higher premiums but more freedom to choose providers/facilities)
- POS (a hybrid plan that shares features from HMOs and PPOs)
Depending on the size of your company and the needs of your employees, you can shop around to find the best plan for everyone.
2. You Don’t Need to Run a Big Company
How many employees do you need to have to sign up for small group insurance? 50? 20? 10?
None of the above. Some plans allow you to sign up with as few as two individuals — yourself and one employee. So even if you’re launching a brand-new startup or you run a small family-owned business, you can still get the coverage you need.
3. It’s More Cost-Effective for Everyone
Individual plans cover an average of 64% of out-of-pocket costs, while employment-based plans (including small group insurance) cover as much as 80%.
The potential savings don’t end there, either. Before you select a plan, sit down with your employees and talk about how much everyone can afford to pay in premiums, co-pays, and deductibles. Without prying into their medical history, find out which options and benefits are most important to them.
4. The Premiums Tend to Be Stable
Health insurance premiums have skyrocketed in recent years, often outpacing wage increases. Due to the COVID-19 crisis, major insurers are already predicting premium rate increases of up to 4.5% in 2021.
Even when the market is unstable, though, small group insurance rates rarely see the wild fluctuations and price hikes common with individual plans. Small increases are unavoidable, but your premiums will likely remain affordable for many years to come.
5. Better Benefits = Better Employee Retention
Can you name the number one benefit employees look for in a potential job? That’s right — 88% of workers list healthcare coverage as their most desirable employee benefit.
If you’ve never offered insurance to your employees, it’s time to consider the indirect benefits of small group insurance. By offering this important benefit, you’ll attract more desirable employees and have a better chance of retaining them long-term.
Is Small Group Insurance Right for You?
With everything happening in the world today, none of us can afford to go without health coverage. Fortunately, small group insurance policies make it possible for everyone to get the coverage they need.
Now that you know these small group insurance facts, what’s next?
If this seems like the perfect option for your company, we’d be happy to help. Contact us today with any questions you may have or to request a free quote.