Group Health Insurance Plan for Businesses

Date: May 5, 2022       Category: Insurance/Health        Author: Kip Kelly

What is Group Health Insurance Policy and how to avail the cover which is being offered in it?

Everyone needs insurance and group health insurance is rapidly gaining popularity. So let us understand what exactly it means and how is it useful. Group health Insurance plan is basically an insurance cover that is paid via an employer or an organization. Typically this covers all the people in a group. In fact it is more profitable to opt for a Group health insurance since you get better discounts and this is an added benefit. Bear in mind that often deductibles, co-pays and other overheads neutralize the rate you will get, so eventually individual health insurance too becomes equally affordable.

Most often a group health insurance policy is given by an employer to his staff. Here the employer makes a partial payment of the insurance policy's premium which covers his staff.

Usually the employer opts for Group Insurance Policy so that he is able to cover the medical expenses for his employees. Earlier the employer bore the complete cost of the same, but with the changing times the employer now needs to make a partial contribution to the insurance premium amount of employee.

Thanks to the new laws which have been passed by the Congress, the burden on the employee for group health insurance policies has been lowered substantially.

What is the advantage to the business?

It is no secret that employees appreciate group health insurance plans and thus majority of the employees consider it to be very important. By offering group health insurance policies numerous companies have been able to retain their staff for a longer time. Employers too can avail of the benefits of this group health insurance plan due to lesser costs.

A group medical insurance policy provides you with extra special bonus by means of tax incentives which are provided to the employer as well as to the employees. Take for example, if you are an employer you would wish to lower your payroll taxes. However if you give your employees the facilities of a group health insurance, which is a part of the complete compensation package you offer them, then you will be deducting the complete premium which you pay in order to get a good group health insurance plan.