How to Decide on Group Health Insurance for Your Small Business
Group health insurance provides an inexpensive and accessible way to ensure your employees have access to the health insurance coverage they need.
Small businesses can save money by pooling their resources together, but it’s important to understand the benefits and drawbacks of group health insurance before you put your final signature on the dotted lines. Here are some tips on how to decide whether group health insurance for your small business makes sense for you.
What Are the Different Kinds of Coverage?
One of your first considerations should be what kinds of coverage you’d like. There are many, but these three options—health maintenance organization (HMO), preferred provider organization (PPO) and point-of-service (POS)—represent some of your best options.
When it comes to picking a plan, it’s important to determine what kind of coverage will make sense for you and your employees. This way, everyone can take advantage of affordable, quality care while staying within your budget.
We would suggest you to get in touch with an experienced insurance broker who can suggest the best option to you based on your budget, business goals, and current financial conditions.
Am I eligible?
There are primarily two types of group health insurance coverage: small and large health insurance plans.
If your company has one to 50 employees, you are eligible for the small group insurance plan. If it has more than 50 employees, you will need to apply for a larger coverage.
Keep in mind that, if your company consists of only a few people, at least one of them needs to be not related to you in order for your company to be eligible for group health benefits.
You can also buy group health insurance in a category (e.g. only for full-time employees).
How does group health insurance differ from a normal health insurance plan?
By signing up for a regular health insurance plan, all the costs are coming directly out of an individual’s bank account. It has nothing to do with an employer or business.
A group health insurance, on the other hand, is provided by the employer. You, as the employer, will offer a group health plan where your employee, his/her spouse and other immediate family members can sign up and only pay a small percentage to which you have agreed beforehand.
Depending on how you look at it, the pros may also be cons.
- Some employers may be willing to cover some (or even all) of an employee’s monthly health insurance premium.
- Some employers can assist their employees in choosing an appropriate plan for them based on their needs.
- Some employer can alter their group insurance plans whenever they want without consulting with their employees.
There are certain individuals who prefer to manage all aspects of their healthcare plan on their own, and so all of these points highlighted up above can pose a difficulty. But then, an employee is always free to get a separate plan of his/her own along with his/her group health insurance policy.
Where can I get help with getting a group health insurance plan for my business?
At Trust Life, we have over 30 years of experience dealing in insurance and investment plans for businesses and individuals in Ontario, Canada. Need a hand with choosing the appropriate group benefits plan for your business? Let us talk!
Get in touch with our group benefits experts. No fees, no obligations! Let us help you take your business to new heights.