A complete guide to insurance policy selection for top employers

Sunday, January 29, 2023 15:31 Posted by Admin
A complete guide to insurance policy selection for top employers

It is essential to take into account all of the choices you have when selecting the health insurance policy that would best meet your requirements and fit within your financial constraints. On the other hand, this is simpler to say than it is to accomplish, and there are a lot of complicated elements that need to be kept in mind.

This guide will break down the essentials and give you extra resources to complement your insurance journey, whether you’re looking into the best type of policy to pick via your employer-sponsored insurance or are just starting to look into your private health insurance alternatives.

What is Employer-Sponsored Health Insurance?

Employer-provided health insurance, sometimes known as EHI, is a kind of medical coverage that an employer makes available to its employees and the employee’s dependents. Both the selection of the plan and the determination of the specific benefits that it provides are within the purview of the employer. In most cases, the cost of health insurance premiums is split between the employee and the employer.

The cost of the premiums is split between the employee and the employer. There are also significant financial benefits associated with participation in workplace health plans. For instance, employee payments may be paid pre-tax, which results in a reduction of both federal and state taxes owed by the employee.

Are employers required to provide health insurance to their employees?

Because of the Affordable Care Act (ACA), companies that employ more than fifty full-time workers are required by law to provide health insurance to their employees. Because small firms make up 99 percent of all enterprises in the United States, the legislation primarily targeted larger organizations that had the financial resources to take advantage of this benefit. These businesses are referred to as “Applicable Large Employers” (ALEs).

There is no requirement for small enterprises with less than 50 full-time employees to furnish their workers with a health insurance plan. As a direct consequence of this, the use of personal Health Savings Accounts (HSAs) has increased. The federal government does not tax the contributions contributed by individuals.

Under the shared responsibility section of the Affordable Care Act, every adult in the United States was obliged to maintain a minimum level of health insurance coverage. Despite this mandate, many small business owners have chosen to provide health insurance for their employees.

These employers were offered an incentive in the form of a tax credit to help pay for the health insurance costs for their small businesses. However, since the penalty for not having basic coverage was eliminated in 2019, a significant number of workers are now without health insurance provided by their employers.

A complete guide to insurance policy selection for top employers

Advantages of Having Employee Health Insurance

There are advantages for both the employee and the employer in providing health insurance that is paid for by the employer, and these advantages exist even if there is no legal duty for the firm to provide such insurance.

Employee Benefits Broker

  • Cost-effective medical treatment. Employees have access to more affordable health insurance and medical care, which is something that they would not have been able to get otherwise. For instance, they may have access to primary care physician they wouldn’t have been able to afford on their on.
  • Chronic condition treatment. Access to mental health care and chiropractic services is a common perk of many plans but is often excluded from the most affordable individual policies.
  • Improved morale. According to several studies, companies that provide their workers with access to medical care tend to have happier, more productive workers.
  • No research is required. When it comes to group health insurance plans, the responsibility of selecting both the plan and the provider falls on the employer. Employees will spend less time and effort picking the best plan for their needs as a result of this.

Benefits For Employers

  • Bring in more qualified employees. Your company will have an advantage over its competitors if it offers perks like health insurance that is paid for by the employer. The most qualified individuals are interested in finding employment with companies that will look out for their health and welfare.
  • Tax-deductible premiums. Premiums paid by employees to their employers for health insurance qualify for a tax deduction. This may result in a reduction in your annual tax liability by thousands of dollars.
  • A more productive labor force. Because the health and well-being of an employee have a significant influence on their productivity, it is possible that providing healthcare coverage will make your team more productive.
  • Reduced premiums for the insurance. The greater the number of workers that participate in a healthcare plan, the more evenly the risk is distributed. When there are a greater number of persons registered in a healthcare plan, health insurance companies reduce their premium rates.

Employer-Sponsored vs. Private Health Insurance

Employer-Sponsored vs. Private Health Insurance

The high cost of employer plans is one of the drawbacks of having health insurance provided by one’s employer. The tax benefits of employer plans may make them more cost-effective in the long run, making individual plans seem more expensive than they are.

The differences between private health insurance and health insurance provided by an employer are often misinterpreted. When deciding on the best course of action, it is essential to take into account both the similarities and the differences.

Similarities and Differences in Benefits

The primary similarity lies in the fact that participants in both individual and employer-sponsored plans are guaranteed a predetermined minimum level of medical coverage. For instance, pre-existing conditions are covered under the umbrella of both kinds of policies.

One of the key differences is the flexibility of any plan. When compared to group insurance plans, individual plans provide far greater leeway for patients to choose their physicians and hospitals of choice. When it comes to corporate healthcare insurance, these options could be constrained more.

Eligibility requirements are a key point of differentiation between employer-sponsored and individual health insurance. If a person switches jobs, there is a little window of opportunity to keep the employer-sponsored health insurance coverage, although individual plans may be carried to other places of employment.

Cost Differences

The price difference between the two options is substantial. A plan that is sponsored by an employer costs an average of $6,435, while a plan purchased by individual costs an average of $4,632 annually. With tax credits, the cost of an individual plan may drop to as little as $1,272 per month.

But that’s just part of the tale. Because companies and workers split the cost of the premiums, employee contributions to employer plans are reduced by one-half. In addition, workers do not have the chance to make contributions to an individual plan that are exempt from taxation.

What are the different tiers of health insurance metal plans?

Based on the extent of coverage provided, every health insurance plan is assigned one of many possible metal levels. You may choose from one of these five levels of coverage when you sign up for an Affordable Care Act plan in the health insurance marketplace:


These plans offer the greatest out-of-pocket expenses but the lowest premiums. You may anticipate paying forty percent of the costs for covered treatment, while your plan will pay sixty percent of those medical costs.


These plans feature high out-of-pocket expenses but cheap premiums. You may anticipate paying thirty percent of the costs for covered treatment, while your plan will pay seventy percent of those costs.


These plans feature high premiums but low out-of-pocket expenditures since the patient is responsible for paying just 20% of the costs for covered treatment while the insurance company pays 80%.


Platinum plans have the highest premiums but the lowest out-of-pocket expenses since the patient is only responsible for paying 10 percent of the total costs for covered treatment while the insurance company pays 90% of the health care costs.

Catastrophic coverage

You may have the option to purchase a life insurance coverage plan that includes catastrophic coverage alongside the four metallic levels of coverage that are now available to you. Anyone under the age of 30 and people who meet the requirements for a “hardship exemption” are eligible to purchase catastrophic coverage.

Because they are intended to protect you even in the direst of circumstances, they are sometimes referred to as “catastrophic” coverage. These plans have relatively cheap premiums in comparison to their very high deductible health plan.

What are the different tiers of health insurance metal plans

How much does health insurance cost?

The price of health insurance policies is very variable and is dependent on both the kind of plan and the degree of coverage provided by the plan. You should anticipate that the cost of your health insurance plan will increase on an annual basis, even if you continue to maintain the same health insurance plan from one year to the next.

The typical annual price for an individual health insurance plan is $484, while the premium for a family plan is $1,230. Nevertheless, the actual costs that are offered vary depending on characteristics such as age, gender, and postal code. Search for health insurance plans and prices in your state by selecting the state from the drop-down menu.

When selecting a plan, it is essential to take into account a variety of factors in addition to your regular payments. Even if you go for a plan that has a lower monthly premium, there is still a chance that you may have a higher deductible. This means that you will be responsible for paying a larger portion of your medical expenses out of pocket before your insurance kicks in.

Be careful to take into account not just your financial situation but also your history and current medical requirements. If you have to visit the hospital or your doctor often, you may discover that a plan with a higher monthly premium and a smaller deductible is more cost-effective.

If you are confused about which health insurance plan would be most suitable for both your requirements and your budget, a professional health insurance agent can assist you in making the correct choice.

When can I buy health insurance?

You may be able to purchase health insurance at any time throughout the year, based on the kind of healthcare coverage you are searching for as well as other relevant conditions in your life. On the other hand, you may be required to wait till the Open Enrollment Period, which is the yearly period during which you may enroll in ACA major health insurance policies.

If you have questions about whether or not you can buy health insurance at any time during the year, you should contact a licensed insurance agent. It is recommended that you look at the complete list of open enrollment periods by the state to determine when you will be able to select an Affordable Care Act plan to enroll in. Open enrollment times may be different depending on the state.


When an employer provides health insurance, the plans may be more expensive, but workers often have access to a far larger number of benefits than they would with an individual plan. In addition, workers have the opportunity to lower their total taxable income for purposes of the federal income tax by making contributions, which are eligible for tax benefits.

Written by Todd Taylor

Todd Taylor

Todd Taylor oversees most of the marketing and client administration for the agency with help of an incredible team. Todd is a seasoned benefits insurance broker with over 35 years of industry experience. As the Founder and CEO of Taylor Benefits Insurance Agency, Inc., he provides strategic consultations and high-quality support to ensure his clients’ competitive position in the market.

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