What is Group Health Insurance and Should you Offer it to your Employees?

So what, exactly, is group health insurance?

A closer look at Group Insurance Coverage for yourself & your Employees

In a nutshell, it’s employer-sponsored health coverage for business owners, employees and employee dependants. These plans typically cover you and your employees. In a group plan, the employer and the employee share the cost of the premium. The employer can choose to cover anywhere from 50 – 100% of the total. Businesses with at least 2 employees in any industry can qualify for a group policy.

group plans

What you didn’t know about group health insurance can make you money.

Group health insurance. At first glance, this may look to an employer like just another business expense. But take a second look and you’ll see two key benefits:

  • Increased Employee Retention
  • Tax Credits or Deductions

To clarify: You don’t actually make money directly by providing your employees with health benefits. Taking care of your employees ensures that they’ll stay with you in the long run, growing with you and saving you from the losses related to training new employees.

working-people

How does this work with the Affordable Care Act?

Everyone in this country is required to have health insurance. Because this is the case, tax credits are offered to small businesses to help you take care of your employees. These credits are only available when you purchase your plan through The Exchange, which is California’s online Health Insurance Marketplace, a.k.a “Covered California.”

You’re probably wondering how these credits work. They apply specifically to small businesses with fewer than 25 employees, whose average annual salaries are below $50,000. Businesses with less than 10 employees whose average annual salaries are $25,000 or less qualify for the maximum amount of tax credits.

Take a look at this table for an example:

small-business-tax-credit

Want to get started with a group health insurance plan? It’s easy!

While obtaining a group plan can seem complicated, especially when you browse The Exchange for the first time, having a licensed agent guiding you through the process takes any guess work out of it. At The Point Insurance, we support businesses like yours in making the best health insurance choices every day. We can offer you plans through both The Exchange and directly from insurance companies, while demonstrating the benefits of both.

To get started, complete a census form with your information and your employees’ information. We’ll work together to find the right plan for your team, then walk you through the application process.

We look forward to making the process simple and enjoyable for you, while capturing the maximum available benefits for your business.

Still wondering if a group health insurance plan is for you? Click here to request a detailed proposal. 

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