What is group health insurance?

Group health insurance is a single policy issued to a group of people, offering uniform healthcare benefits to all members. In most cases, these policies are purchased by employers and offered to eligible employees and their families as part of an employee benefits package. Enrolling in group health insurance generally costs participants less than what they would pay for an individual healthcare policy for two main reasons:

  1. The risk is spread over the whole group, as opposed to just one individual.
  2. Many employers pay a portion of employees’ premiums.

What are the benefits of group health insurance?

For employees, the benefits of group health insurance include the reduced price of healthcare and the ease of enrolling through their employer. For employers, the benefits range from attracting quality workers to the tax credits they can receive.

Is your business required to purchase group health insurance?

Large businesses with 50 or more employees are now required to offer group health insurance under the Affordable Care Act. Small businesses with fewer than 50 employees are not required to offer coverage, but they can qualify for tax credits to help offset the cost if they choose to offer healthcare and pay for at least half of each employee’s premium.

What is group voluntary benefits insurance?

Group voluntary benefits insurance is a single policy issued to a group of people, offering individual coverages that are separate from the medical plan as requested by an individual employee. Coverage as at the employee discretion and is paid by the employee or employer and with deductible contributions.  These coverage types are purchased individually  (Accident, Cancer, Hospital, DI) and are covered outside of the medical plan and are designed to pay in cash to the employee to help with medical costs and higher deductibles.  Because of the flexibility of administration, these plans are seen to be growing exponentially in the marketplace to assist in higher medical deductibles in the Affordable Care Act.  The value proposition to an employer includes…

  1. Complete authority to manage the funding and employee coverage decisions on a tax deductible basis.
  2. A way to increase employee retention for little or no cost, and to possible reduce workers compensation fraudulent claims.

What are the benefits of group benefits insurance?

For employees, the benefits of group benefits insurance include the the ability to reduce cash outlays for accidents and medical conditions that can suddenly have grave consequences to family cash flow.

Is your business required to purchase group benefits insurance?

There are no government requirements or rules impacting the employer from offering this coverage to its employees and often can be employee paid, partially funded or fully paid by the employer as they see fit.

Thank you for your interest in RF Insurance Group. We work diligently throughout California, Arizona and Nevada to find the best coverage customized for your unique needs. Please feel free to call our office at 520-448-4498 or email your questions and an agent will reply promptly.