Updated: Apr 19
Are you planning to offer group health insurance for your employees? The experience of finding a group health coverage doesn’t need to be complicated. In fact, there are a few basic things you should know as you begin the process of adding this benefit to your business.
1. How many employees need to participate in group health insurance?
Group health insurance is available for businesses of all sizes. For example, group insurance for small businesses is for those with 1-50 employees. However, if you have a small business you should know that most brokers will charge a fee for these micro-groups as they aren’t compensated by the carrier.
When offering group medical insurance, remember that 50-75% of employees need to be a part of the plan. Take inventory of how many employees there are in your business who could join the plan.
2. Do employees need to be full-time or part-time to get health insurance coverage?
It’s up to you as the employer to decide whether part-time or full-time employees are offered a group health insurance plan. That being said, employees with health insurance coverage typically work a minimum of 20 hours part-time and 30 hours full-time.
3. Plan coverage
Did you know that health insurance plans are usually better for groups than individuals? In general, these plans cost less per person. What is covered by the plan will depend on the plan itself and varies across carriers. When meeting with your health insurance broker, remember to ask what’s included.
There are additional benefits as well. For example, vision, dental, short-term disability, long-term disability, and life insurance.
4. Offering the benefit of group medical to your employees
Providing group insurance plans for employees isn’t only beneficial for the health of employees, but can lead to higher morale. You can learn more about how these plans benefit employee health and finances on our blog post about the importance of group health insurance.
5. How to find a plan that’s right for your employees
When searching for insurance plans, we recommend speaking with a licensed health insurance broker in your area. This allows you to get accurate information specific to your business and its needs. Your broker will help you find a plan that matches what you’re looking for.