As Phoenix continues to be a hotspot for small business and growth, the focus on employee welfare and benefits has never been more pertinent. One of the most substantial and critical employee benefits package a business can offer is health insurance. For health maintenance organizations in Phoenix, large-group health insurance coverage can be a strategic advantage. In this article, we’ll break down the costs, advantages, and eligibility criteria for large group health insurance plans, equipping you to make an informed decision for your Phoenix-based business.
The cost of a large group health insurance plan in Phoenix varies significantly depending on several factors. These include the number of employees, the extent of coverage, and any additional benefits that employers pay that may be added to the health insurance plan itself. However, a ballpark figure for the annual premium per employee can range between $7,500 and $15,000. Employers generally shoulder 70-85% of this cost, while full-time employees contribute the remainder.
It’s important to remember that offering a group health insurance plan can also come with some financial advantages. Employers can often write off the employees’ premiums they pay for offering group health insurance plans as a business expense, providing a tax benefit. Economies of scale also come into play with the group plan, as the cost per employee may decrease as the size of the insured group increases. Contact a preferred provider organization when buying group health insurance plans!
In a competitive job market like Phoenix, offering a substantial group health plan coverage and insurance package can be a deciding factor for top talents when choosing an employer. Given the significance employees place on individual health insurance benefits, offering a large group health insurance plan can be a substantial attraction and retention tool.
The larger the group, the Arizona group health insurance company the lower the cost per employee, generally speaking. This affordability allows businesses to offer group health insurance options and plans that cater to various needs, from preventive care to specialized treatments.
In large-group insurance plans, the risk is spread over a greater number of individuals. This distribution generally leads to more stable and predictable premiums, providing financial peace of mind for both employer and employee life insurance and health insurance policies themselves.
For businesses with 50 or more full-time or equivalent employees, offering health insurance is mandated by federal law under the Affordable Care Act (ACA). Failure to provide health benefits and to provide health insurance or group health coverage also could result in substantial penalties.
In the United States, the standard for what constitutes a ‘large’ group in the context of most business health insurance plans is generally 50 or more full-time or full-time equivalent employees. This definition holds true for large and small businesses based in Phoenix as well. If you’re a business owner with a workforce near this threshold, you’ll want to perform a detailed count, including all full-time and equivalent employees, to determine your eligibility for large or small business health insurance plans. Go through the Affordable Care Act when you purchase group health insurance!
Large group health insurance is more than just a fringe benefit; it’s an investment in your company’s most valuable asset—its people. In Phoenix, where competition for top talent is fierce, providing a substantial health insurance plan for eligible employees can set you apart. While the costs associated with these group health plans often are significant, the benefits, both tangible and intangible, can outweigh them considerably. By considering the cost to offer health insurance per employee, the scale benefits, and your obligations under the law, you can make a well-informed decision that contributes to the well-being of your employees and the long-term success of your business.
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