In 2019, about 92 percent of the U.S. population had some kind of health insurance. Having health insurance has many benefits. However, you need to choose the right plan for your specific needs and budget. When it comes to group health insurance, you should first understand how this plan works before buying the insurance policy. This will go a long way in helping you make informed decisions. So what exactly is group health insurance and why should you purchase it?
Here’s what to know.
WHAT IS GROUP HEALTH INSURANCE?
Group health insurance, also known as corporate health insurance policy or group mediclaim policy, is a type of medical insurance policy that provides coverage to a specific group of people. The single policy can be issued to members of a family, employees of a company or members of an organization. Although these plans vary widely, common characteristics include:
• At least 70 percent participation for the plan to be valid
• Premiums are shared between the organization and its members
• Members can add their family and dependents to the plan at no extra cost
THE ADVANTAGES OF GROUP HEALTH INSURANCE OVER INDIVIDUAL COVERAGE
When comparing health insurance options, one of the decisions you have to make is whether to purchase group or individual insurance. Below are a few benefits of group health insurance over stand-alone health insurance products.
One of the notable benefits of group health insurance is that it provides coverage to members at a lower cost. This is because the risk to the insurer is spread across a pool of policyholders. Unlike individual health plans, the organization will help members with the premiums, making group health insurance a more affordable option.
Compared to individual health plans, group health insurance offers better benefits. The health policy covers maternity and pre-existing conditions, effectively allowing those who might not qualify for individual plans to enjoy the benefits associated with medical coverage. In short, every member of the group will get help with paying for their health care expenses.
NO WAITING PERIOD
A group health insurance policy starts covering various conditions including pre-existing diseases and maternity from day one. The plan comes into effect as soon as it becomes active, allowing members to enjoy the associated benefits when they need them. This eliminates the worry of having to pay for health care out-of-pocket.
Oftentimes, when buying group health insurance, insurance companies will assign a relationship manager to answer questions, allay apprehensions and help out with paperwork. When it comes to individual policies, this kind of assistance is not possible. The assistance and support offered provides convenience, helps to save time and ensures faster processing.
WHY YOU SHOULD OFFER GROUP HEALTH INSURANCE TO YOUR EMPLOYEES
As an employer, your employees are the most valuable asset your company has. As such, you will want to make sure that your team is taken care of. Part of this involves offering them health insurance coverage. The good news is that group health insurance presents a win-win situation for you and your employees. Here’s how.
In addition to health coverage, group health insurance can result in tax advantages for your business. For employers, the money paid as insurance premiums is usually tax-deductible. Similarly, enrolling in this type of plans can reduce your employees’ taxable income. In the end, both you and your staff will minimize your tax liability.
Offering your employees health insurance is a great way to make them feel valued and appreciated. This will contribute to a positive workplace and happy employees. When workers do not have to worry about how they will meet their health care costs, they will be in a better position to focus on their work. This will not only improve their overall well-being but also lead to increased productivity.
HELPS IN EMPLOYEE RETENTION
Providing benefits such as group health insurance will make employees feel like they are part of the company. In today’s world where it is becoming increasingly difficult to retain employees, you should find ways to increase the chances of your staff staying in your company. Offering health coverage will help you keep your workers happy and reduce employee turnover.
NO MEDICAL CHECK-UP NEEDED
Your employees will not be required to undergo a medical check-up or submit medical reports when you buy group health insurance. This helps to make the entire process simple, fast and stress-free.
HOW TO PURCHASE GROUP HEALTH INSURANCE
Before investing in a group health insurance, you want to make sure that you have picked a plan that offers maximum benefits. This is why you should take time to evaluate your needs and weigh your options. Below are a few things to consider.
CHOOSE AN EXPERIENCED AGENCY
Considering the numerous health coverage options available on the market, choosing the right plan can seem daunting. Working with an experienced agency will help you save both time and money. The professionals will offer your company and employees the support and service you deserve. They will provide you with a wide range of options, offer expert advice and help you understand the policy you choose.
PROVIDE A DETAILED CENSUS
Your insurer will require you to complete a census form to help them estimate the healthcare costs you are likely to incur as a group. This will in turn enable them to calculate your premium. When purchasing group health insurance, you will definitely have to state the size of the group. Other details include the name, age, number of dependents and ZIP code for each member. Make sure the information you provide is up-to-date and accurate.
c) DO NOT JUST LOOK AT PRICE
Price is an important factor to consider when purchasing health insurance. However, you should not look at the price alone. Apart from checking what is included in the policy, ensure you review all the limitations and fees associated with the plan. Pay attention to things such as the amount insured, mobility and whether you can customize the plan. This way, you will have a clear understanding of what you are getting into when you sign the insurance documents.
At Amerus Financial Group, we are an independent insurance agency committed to offering innovative solutions that meet your needs. Our experienced agents will help you find the best coverage options at the most competitive rates, so you can lower your health insurance costs. Contact us today to schedule an appointment and experience the Amerus difference.