Instant Group Health Insurance Quotes

Friday, March 1, 2024 20:32 Posted by Admin

As employers shop around for health insurance coverage options for their employees, it’s common to want to know the different strategies and their associated costs. When it comes to group health insurance costs from a small business owner’s perspective, the premium is typically the most important number to ponder. The premium refers to the payments that are made to the insurance company monthly to maintain coverage.

Despite the fact that premiums have grown over time, the average cost of group health insurance has stayed comparatively stable. Although you can look at average costs as a benchmark for what group health insurance will cost, the best way to avoid any surprises is to get a quote.

Requesting an instant group health insurance quote from a broker or directly from the insurance company is an incredibly helpful tool to determine how much it’s going to cost to provide your employees with group health coverage.

How Does Group Health Insurance Work?

If you’re looking into getting a group health insurance plan for your company, there are some things you must be aware of. For starters, when you want to purchase group health insurance, you must be a group. A single individual cannot sign up for these types of plans. In order to qualify for a group health plan, your business must also have at least one employee. For those with more employees, most insurance companies require at least 70% participation from employees for the plan to be valid.

Group health insurance plans are designed to be cost-effective for both the employees and the business itself. Employee premiums are generally much less than they are for individual health insurance. The premiums are also paid using pre-tax money, which allows employees to benefit from paying less on their annual taxes. Employers, on the other hand, generally pay lower payroll taxes, can deduct their contributions from their income taxes, and may qualify for specific federal tax breaks.

Health coverage helps businesses of all sizes pay for their employees’ medical expenses. The employer selects a group health insurance plan and then decides the amount that they will cover. Then, the employees are responsible for the remaining costs of the plan.

Why is Group Health Insurance More Cost Effective?

Group health insurance is notoriously more affordable than individual health insurance since there are more participants. The insurer’s risk is spread between an entire group of people, and the larger the risk pool, the lower the cost. This is why it’s common for employees to see substantially lower premiums with group plans compared to individual coverage. To help put things into perspective, consider this:

  • Less people mean an increased risk for the insurance company.
  • More people mean a decreased risk for the insurance company.
  • The higher the risk, the more money it costs to insure a group.
  • The lower the risk, the less money it costs to insure a group.

In other words, as the group of insured gets bigger, the cost of group health insurance drops. For this reason, group health plans are, arguably, the greatest way to get cheap insurance for employees, while also helping the employer afford to appropriately cover their team.

How Do the Shared Costs Work?

Since the cost of group health insurance is shared between all the members of the group, both employer and employees, these plans cost less. Additionally, the employer pays a portion of the employee’s health insurance premiums, while the employees are responsible for the rest.

While employers can choose to make their employees pay for most, or all, of the group health plan, paying a portion of the premiums can help attract and retain talent. It shows the employees that the employer is actually helping them pay for their medical expenses, rather than just offering them a plan that the employee has to pay for.

How Much Does Group Health Insurance Cost?

In 2020, the Kaiser Family Foundation conducted a survey that found that the average cost of group health insurance for premiums was $622.50 a month, or $7,470 a year, for single coverage. Whereas, the average premiums costed $1,778.50 a month, or $21,341 a year, for family coverage.

For single coverage, employers contributed an average of 83% of the premium, or approximately $6,227 per year, and the employees funded the remaining 17%. For family coverage, employers contributed an average of 74%, or $15,754 per year, and the employees took care of the additional 26%.

While these national averages can be helpful to determine how much group health insurance is going to cost you, there are a number of factors that impact the cost of a policy for your organization.

  • Employee demographics
  • Number of group members
  • Location
  • Insurance provider
  • Structure of the health plan
  • Provided coverage under the plan
  • Network of providers

How Much Are Employers Required to Contribute to a Group Health Plan?

According provisions set forth in the Affordable Care Act (ACA), in most states, small businesses that have less than 50 full time (or full-time-equivalent) employees are not legally required to offer health insurance to their employees. However, there are strong arguments for providing coverage anyways, as it can help business owners attract and retain quality team members.

If you choose (or are required) to purchase group health insurance, most states require that you contribute no less than 50% of each employee’s health insurance premium. Though, again, this can vary depending on where your business is located. Keep in mind that, as the employer, you also have the option to contribute more to your employee’s premiums.

Get Your Instant Group Health Insurance Quote Today!

When it comes to determining the cost of group health insurance, it can be useful to analyze national trends. Though, it’s even more useful to obtain a quote. The main purpose of group health insurance quotes is to deliver an accurate and straightforward picture of what the price of group health insurance is going to be prior to purchasing a plan.

Just like any other form of insurance, it’s always smart to gather quotes from multiple health insurers to find the best deal. Although nearly anyone can compare rates online, oftentimes it makes the most sense to have a professional guide you through your options. While working with a health insurance broker may not be necessary for everyone, it can be highly beneficial for those with complex insurance needs – like business owners looking to purchase a group health plan.

The licensed, professional brokers at Taylor Benefits Insurance Agency, Inc. can assist you with any additional questions you have regarding group health insurance and how to find the right group health plan that fits the needs and budget of both your employees and business as a whole.

Contact us today to get the process started and receive your instant group health insurance quotes!

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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