If your small business is starting to grow and you would like to reward your employees by offering health insurance to them, you will need to choose a group insurance plan. There are many different group insurance plans to choose from and trying to decide which plan to purchase can be tricky. Here are three things you may want to look into with group insurance plans so that you can find the right one for your needs.
There are two main types of group insurance plans, and these types are based on the size of your company in terms of employees. If you have 50 or fewer employees, your company will be considered a small business, and you will be able to purchase a group plan that is designed for small businesses. If you have 51 or more employees, you will need to locate a group plan designed for large businesses.
The costs of group plans can vary tremendously, and the methods used to calculate the costs are somewhat complex. The good news about group policies is that they are generally more affordable for employees to purchase rather than the private policies they could purchase on their own, and this is primarily because the risk is spread out between many people.
In order to get quotes on group policies, you may need to give the insurance companies some details about your employees. This may include their ages, genders, and health issues they suffer from. From this information, the insurance companies will calculate quotes for you.
You should also understand that you will not be solely responsible for paying these premiums. You can charge your employees for the insurance, but the rule is that their premiums cannot exceed 9.5% of their income. In other words, if an employee makes $5,000 per month, he or she should not pay more than $475 per month for the coverage.
There are two main types of insurance policies you can choose from as you are searching for the right policy. The first type is the most common type, and it involves the use of copayments. With this type of insurance, your employees will be able to go to the doctor and pay a small payment each time they go. This may be $20 or $30, and the insurance company will pay the rest of the bill. With policies like this, there are usually deductibles and limits, and these typically apply to medical bills that are outside normal visits. With these, a person may have to pay a certain percentage of the medical costs and the insurance company will pay the rest.
The other type of health insurance available today is called high-deductible health insurance. This type of insurance is a lot cheaper to purchase, but it works in a way that is very different. With this option, employees are given health savings accounts (HSAs), which are bank accounts. The employees are able to contribute money to their HSAs, and they can use the money in their accounts to pay for their medical bills.
There are no copayments with these plans; the employees typically pay for the total amount of the bills out of their pocket. These plans also have deductibles, but they are generally fairly high. When a person reaches theirs, the insurance company then begins paying a high percentage of the medical costs the person incurs.
If you would like to learn more about group insurance plans for your company, contact an insurance company, such as Health Shop Inc, today and talk to an insurance agent to find out more about the options you have.