Group health insurance is an insurance policy offered by employers that provides health coverage to employees and their dependents. Below, the insurance professionals at Unity Insurance discuss the basics of group health insurance and everything you need to know before purchasing a policy.
Requirements For Enrollment
Your business must have at least one full-time employee to enroll in group health insurance. Small businesses with less than 50 full-time employees are not obliged to provide health insurance under the Affordable Care Act (ACA). Still, if your company has more than 50 full-time employees, you must provide group medical insurance.
Benefits of Group Health Insurance
You can bundle health plans with group insurance coverage, including dental and vision. Premiums for group insurance policies are often lower than individual policies, and another benefit for employers is that the payments towards monthly premiums are tax-deductible. Offering employee paid and payroll deducted Voluntary benefits such as Short-term Disability, Critical Illness, Hospital confinement, Life and Accident help build a robust benefits package for your employees and can help reduce Employer payroll taxes.
Additionally, if your business has 25 employees or fewer and your average paid salaries are less than $50,000 a year, you may qualify for Small Business Health Care Tax Credit. This allows you to offer health coverage to your employees through a Small Business Health Options Program Marketplace. This program will pay for a minimum of 50% of the cost of each employee’s health coverage.
Purchasing Group Health Insurance
Before purchasing group health insurance, it is essential to gather information from all employees and their dependents, including name, date of birth, and zip code. This information allows your agent to provide you with an accurate quote.
In addition to basic information, you’ll want to consider a time frame to ensure that the quote you receive won’t expire and that you will have enough time to complete the process. The recommended time frame is between six and twelve weeks, and at a time when your business is not typically too busy.
Another important step when purchasing group health insurance is to examine your budget. Budgeting helps determine what you are willing to contribute to a group health insurance plan. Look at your payroll and evaluate how much you can spend every month on each employee, then decide if this makes sense for your business.
Speak With An Agent At Unity Insurance About Group Health Insurance
Unity Insurance understands the challenges of deciding if group health insurance is the right choice for your business. Our professionals provide guidance and support to ensure you make the right decisions regarding coverage for your business. We work with our clients to provide the best plan to match the business and employees’ needs. Call 410-539-6642 to learn how Unity Insurance’s experienced insurance agents can assist you.