What is the difference between small business health insurance and group health insurance?
Group health insurance is provided to members of a group of persons, as employees of one or more employers or members of associations or labor unions. The term is usually used to distinguish this type of health insurance from individual health insurance. Group health insurance has some tax advantages.
Small business health insurance is provided organizations or businesses with 2 – 50 people. A small business health insurance plan provides medical care for yourself and your employees, as well as helping spread the financial risk between all the members, which usually means lower premiums and more extensive coverage for everyone. Employer contributions to a small business health insurance plan are generally 100% tax deductible, and employees save on payroll taxes. Small businesses (and certain organizations, like non-profits) are generally eligible for group health insurance so long as they can show two or more full-time taxable employees.
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Small Business Health Insurance News
Health Insurance Market Changing for Employers and Employees
According to a recent study by Mike Simonds of UnumProvident, the rapidly changing employee benefits market is creating a number of challenges for employers. Below are some of the key points mentioned in the article.
- A one-size-fits-all benefits program is no longer viable, given today’s diverse workforce.
- In 2005, health expenditures represented 16% of the Gross Domestic Product, and health care spending is expected to reach $4 trillion and 20% of the GDP by 2015
- Increased competition to attract the best employees requires employers to offer a competitive benefits package with a wide choice of coverage
- Supplemental or ancillary benefits let employers offer a robust benefits program while keeping costs under control. Offering supplemental benefis on top of the “foundation” benefits shows that employers are thinking more broadly about employee needs.
- Supplemental benefits can help employers compete in a tight labor market by providing more choices for employees and helping to fill any gaps in coverage
- Women outpace men as purchasers of supplemental products, and employees age 30 to 49 are the most common purchasers of these benefits.
Small Businesses Struggle To Afford Employer Health Insurance
American Public Media's "Marketplace" examined how small businesses are dealing with rapidly rising employee costs. "Marketplace" profiled Lincoln Precision Machining, a Massachusetts company with about 20 employees that has seen health insurance premiums for each worker increase from $460 per month in 1999 to nearly $1,500 per month today. The company used to pay the entire premium but now requires workers to pay about $300 per month.
John Arensmeyer, head of the Small Business Majority, said, "Many times, entrepreneurs can't get health insurance because they're too high a risk," adding, "If you run a small business and you can get rated just based on yourself or a few other employees, you may be out of luck finding affordable insurance at all." Arensmeyer also said that small businesses need a system that guarantees access to affordable health insurance. ( May 16th 2007)
Why get small business or group health insurance at Health Plan One?
- We educate our customers about the type of health insurance they are seeking.
- We offer the broadest selection of small business and group health insurance.
- We provide expert customer service through knowledgeable representatives in the health insurance industry.
- We offer instant online health insurance quotes.
Reasons to Offer Your Employees Group Health Insurance
Do you own a small business? Are you wondering if you really need to offer health insurance to your employees? Are you thinking that many small businesses do not offer any health insurance and the government doesn’t require it so it is a good way to save on cost? If you answered yes to any of these questions, you are not alone. However, it is beneficial to both you and your employees to have small business health insurance. Here’s why:
1. You want to make your employees happy. You value the people that work for you each day and want to offer them affordable health insurance as a reward. Health Plan one offers health insurance plans through many popular carriers based on your zip code. .
2. You want to hire and keep the best employees. The fact that a company offers health insurance may be a make it or break it factor when a new employee is choosing between possible jobs or a current employee is deciding whether to stay at a job or look for a new one.
3. Tax deductions. Did you know that 100% of insurance premiums are a business tax deduction?
4. Increased productivity and decrease in absenteeism. Employees that know they will be covered if anything should happen to them are more likely to attend work everyday and work to their potential. This may occur because preventative care measures are being taken by employees who have health insurance, thus avoiding potentially more serious health problems.
5. Pre-tax premium contributions. When employees access group health insurance through an employer, their share of the premium is taken out of their paycheck before taxes are taken out. This is more beneficial to an individual than paying with after-tax money, which is what they do if they have to purchase individual health insurance on their own.
6. Cheaper group rates. In New York, group rate health insurance is much less expensive than individual health insurance. These differences in rates may also be similar for other states making group and small business health insurance more affordable.
7. HSAs. Health Savings Accounts offer a flexible way for business owners to offer health insurance while keeping their costs at a minimum.
Take another look at your company and your employees. Decide what your specific needs are and find a plan that fits those needs. Insurance companies offer plans for small businesses as small as 2 individuals and as large as 50 persons. Whatever your reason is for looking into health insurance for your company, get your small business or group health insurance quote today. Enter your zip code above for an instant online health insurance quote.