Why Your Small Business Needs Group Health Insurance
More than 1 million New Yorkers are uninsured because they consider the available coverage to be unaffordable or they don’t understand their coverage options. Because of this, health policies are one of the most requested benefits by employees.
Employer-sponsored health plans can attract and help you retain top talent, especially because of the high rate of uninsured people and high insurance rates.
Your small business should invest in group health insurance in NY to accommodate employees, keep them healthy, and continue growing your business. Keep reading to learn how group health insurance can help you save.
How Does Group Health Insurance Work?
Group health members generally receive insurance at a reduced cost because the risk gets spread across different policyholders.
Businesses purchase group health insurance plans when they want to offer their members or employees health benefits. Plans are only purchased by groups and not individuals.
There are a lot of differences between group health insurance plans because you can customize them to fit your company’s needs. Many of the differences include:
• Insurers
• Plan types
• Costs
• Terms and conditions
Once your business chooses a plan, group members can accept or decline coverage.
Benefits of Group Health Insurance in NY
Group health plans in NY are community rated, which means you pay the same rate regardless of your age or gender. Your small business can benefit from a NY group health plan because a group health plan helps your company grow and motivates your employees to perform their best.
These are the various benefits you can reap with group health small business insurance:
Creates Trust and Loyalty
It’s no secret that insurance benefits are sought out by employees. If you want to recruit and retain valuable employees who will remain loyal to your business, group health insurance can help.
Compensation is an important factor for employees, but health benefits are also crucial to the success of your team.
In today’s competitive job market, the office culture and team member benefits can set your business apart from others.
Protects Employees
Employee health is an important consideration for business owners. Health insurance is one way to protect employees from unplanned expenses.
As an employer, opting for group health insurance acts as a security measure in case an employee is hospitalized for any reason.
Creating an environment that protects employees from unforeseen medical emergencies will bring out employees’ best performances.
Tax Benefits
Most importantly, group health insurance increases confidence and motivation in employees. However, businesses can also take advantage of tax benefits.
Group health insurance offers the opportunity for small businesses to avail of tax breaks while keeping employees financially secure if they deal with health issues.
Lower Costs
The main benefit of group health plans is that they spread risk across your pool of employees who buy into the plan. Because more people buy into the plan, this type of insurance is cheaper than an individual plan.
Health insurance premiums are kept low, and insurers can manage the risk by knowing exactly who they are covering.
Small business owners can choose to pay a portion of an employee’s premium or have the employee pay for the full cost themselves.
A majority of group health insurance plans are employer-sponsored benefit plans, but you can purchase group coverage through other organizations.
What Does Group Health Insurance Cover?
There are different insurance options to choose from, but what does group health insurance generally cover? Group health insurance covers employees incurring healthcare costs from planned or unplanned hospitalization.
The exact amount your small business group health insurance covers depends on underwriting factors such as. For example, if your employees have high medical claims, you might have to pay higher rates.
Providing health insurance to your employees and their families might allow them to benefit from the following:
• Coverage from day one for employees and dependents
• Pre-existing conditions/illnesses
• Maternity coverage for the employee and their spouse
• Access to a wide network of hospitals
• Access to services through websites or mobile apps
• Access to primary healthcare and wellness programs
Group health insurance plans from employers are likely to be less expensive than a personal health insurance plan, so your employees will appreciate the coverage.
Buying Group Health Plans
To get the best insurance benefits for your employees, you need to understand the different group health insurance plans. To make an informed choice, you need to know the right questions to ask.
Here are some questions to consider:
• Do the benefits of this plan fulfill my requirements?
• Should the group health insurance cost be sponsored by the owner or split between the owner and employees?
• How much money can my company allocate to group health insurance?
• Is the employee health insurance coverage requirement different from the personal health insurance plan requirement?
Insurance providers can help your workforce retain and keep talent with unmatched benefits as long as you know how to choose the right plan.
Additionally, get multiple group health insurance quotes to help you decide on an affordable option.
Insurance Options for Uninsured Employees
Not all of your employees are covered by a group health insurance plan. They can choose to decline coverage. However, this doesn’t mean they have to bear the cost of healthcare themselves.
Those left out of employer-sponsored health insurance groups can opt for government-sponsored health plans.
After the Affordable Care Act (ACA) passed, taxpayers were required to show that they qualified for an exemption or had health insurance coverage.
If they didn’t do this, they were required to pay a “shared responsibility payment” penalty. This payment was eliminated in the 2019 tax year when the Tax Cuts and Jobs Act passed.
Do You Need Small Business Group Health Insurance?
Your small business can benefit from group health insurance in NY. As one of the most affordable health plans out there, you can attract and retain top talent and ensure your employees’ health is taken care of.
HealthPlansNY.com helps small business owners take control of health insurance plans and group benefits. We have different options that can be customized to your business needs.
Since 2005, we’ve been helping small business owners like you improve insurance plans while saving money. For help with anything insurance-related, contact our office today.
