Monthly Cost of Family Group Health Insurance

Monday, August 13, 2018 04:16 Posted by Admin

One of the things that job hunters seek most from a place of employment is a cheap and flexible family group health insurance plan. Offering affordable group health insurance plans is a wise way for businesses to remain competitive. This will help attract job seekers with the right qualities and experience. It will also help your business retain hardworking employees.

The biggest concern for business owners and employees is the monthly cost of a family group health insurance plan. Both the employer and the employees split the monthly premium in most cases. It depends on the carrier and plan you decide to go with. Usually this is an affordable rate for employees especially when it’s offered through their place of employment. According to a survey conducted in 2015, the average single monthly premium was $521.

5 Things That Affect the Cost of a Family Group Health Plan Premium

According to healthcare laws, there are restrictions and factors that affect the cost a group health plan. There are five things that insurance companies most go by when calculating the costs of their health plans.

1. Location- The competition, local and state laws, and cost of living greatly affects the cost of monthly premiums.
2. Age- Premiums on health insurance increase with age. Older people may 3x more than a younger person.
3. Smokers- Tobacco users may be charged 50% more than non-smokers.
4. Plan Category: Bronze, Silver, Gold, Platinum and Catastrophic are the five categories. Of course, bronze is the plan category with the lowest premiums.
5. Individual versus Family Plans- The more dependents on the plan, the higher your premium will be.

Other Costs Associated with a Group Health Plan

There are things that will be added into the final costs of a family group health insurance plan.

• There’s almost always copays for all medical attention that is received. This is an out of pocket expense that employees must be prepared to pay.
• Deductibles are also associated with group health plans. The deductible is a set amount of money that must be spent on healthcare before the insurance company will cover any costs.
• Out of pocket maximums mean that you must spend a certain amount by the end of the year before the insurance company pays 100% of your covered services.