Are you interested in getting small group insurance? Click here to learn what this means and how investing in it would work.
Health insurance remains unaffordable for a large number of Americans. For an individual, the average health care premium is over $7,000 for the year. The annual health care premium increases to over $20,500 for a family plan.
For many Americans, health insurance is the second highest bill only behind the mortgage or rent. What can you do to health care costs?
One effective way to reduce costs is to get small group insurance. Read on to find out how does small group insurance work and the benefits of switching over.
What Is Small Group Insurance?
This type of insurance is designed to cover a group of 50 or less. Many small businesses use this insurance type to cover their employees. The intent is to pool together a group of people to improve health insurance coverage.
Group insurance is compliant with the Affordable Care Act (ACA). This means that the government considers it a quality form of insurance. It meets the high coverage standards set by the federal government when the ACA was enacted.
What Are the Benefits of Small Group Insurance?
There are many benefits to forming a group for insurance purposes. Continue reading to learn more about these benefits to employer and employee alike:
Reduced Costs
Most importantly, a group is going to secure a lower premium than an individual. Studies show that a group can secure a 10% discount on monthly health insurance premiums. Perhaps the more impactful cost benefit is on the deductible.
A deductible is the amount of out-of-pocket expenses that need to be paid before insurance kicks in. The deductible for a group plan is approximately 33% less than an individual plan.
The benefit of reduced premiums positively impacts employers as well. Their contribution to employee health insurance also decreases.
Medical History Is No Longer Relevant
Another benefit is that the insurance company cannot use your medical history to set the premium amount. The monthly premium and deductible is pre-negotiated.
Members of the group do not need to fill out a health questionnaire or take a medical exam. This means that an individual employee’s health is never a consideration.
Attract Top Talent
An intelligent job applicant is likely to ask about the total compensation package. Compensation is more than just an annual salary or hourly rate. It includes benefits like health insurance and retirement plans.
By locking down a group plan, you can promote cheaper health insurance premiums. Recruited employees are more likely to be enticed by a quality insurance plan. They will no longer need to shop the ACA insurance exchanges.
A Recap of Group Insurance Plans
Everyone knows that a group of people is stronger together. This holds true in the insurance industry as well.
By securing insurance as a group, you will see reduced premiums and deductibles. At the same time, the group will receive quality insurance with minimal focus on an individual’s medical history.
Talented job recruits are more likely to be attracted to your company with a quality insurance plan. If you are interested in small group insurance, contact us today to speak with a specialist.