Today’s competitive talent pool has made it essential for businesses to reexamine the benefits that they offer to employees. With the rising cost of healthcare, employer-sponsored group health insurance plans are playing a greater role than ever before in helping organizations of all sizes win over talented newcomers as well as retain crucial employees.
Now Health International’s group health insurance plans are specifically made to reduce the financial burden of both employers and employees while providing the very best medical care possible.
What are group health insurance plans?
Group health insurance plans are a type of health insurance plan that provides coverage to a group of people within a defined organization. They may be purchased by employers or employee organizations. They are typically cheaper than individual insurance plans for the same level of cover per person.
How does group insurance work?
Group health insurance works a bit differently from individual insurance. In the case of some microbusinesses, this group can be as small as two or three people. However, there is usually no limit to the number of participants.
The reason for insuring people in this way is to help reduce and spread the cost of insurance premiums over the entire organization. Typically the employer and the employee share in the costs of the insurance policy, with each contributing a specified amount each period. This allows employees to have much wider coverage for a smaller monthly premium than would have to be paid otherwise, were they to pay for individual insurance themselves.
There are also arrangements where either the employer or employee pays the cost of the premium themselves. The former option is a popular way for SME’s (small-to-medium enterprises) to attract and retain talented employees who may otherwise go to another company.
In order to ensure that the costs are well distributed, a certain level of participation among employees may be required in order to qualify for a group insurance policy. In some cases, owners and their dependents may be excluded, so be sure to contact us to learn about your options.
Why is group insurance cheaper than individual insurance?
Group health insurance tends to be cheaper for two reasons. First, there are more contributors for each plan, which reduces the burden on each employee when they’re paying their portion of their premiums. Second, larger groups allow insurers to give a discount, which means even when combining employee and employer contributions, the cost of the premium tends to be considerably lower than that of a similar individual health insurance plan.
Of course, the more people participating in the group health insurance plan, the lower the premiums for everyone involved. The employer could also instead opt to go with wider group health insurance coverage should there be more participants in the insurance plan.
What are the benefits of getting group health insurance?
Getting a group health insurance policy from licensed agents from an accredited insurance company offers a number of benefits for employers. Some of these include the following:
1.) Group insurance can be used to attract and retain talent.
Individual health insurance plans can be expensive, especially if you need wider coverage. If the employer chooses to pay for most or all of the monthly premiums, group insurance plans can be the deciding factor in attracting talented employees as well as retaining existing ones.
2.) Healthier employees are more productive.
Insured employees tend to be healthier, as they can easily access quality healthcare through a group health insurance plan. The reduced cost of medical care also reduces stress and also allows them to focus more on productivity.
3.) Group health insurance becomes more affordable as more employees buy into it.
As your business grows, it makes more sense to invest in group health insurance as the costs tend to decrease as more employees opt-in. The cost savings could then be passed onto the employees in the form of a larger contribution on your end. These savings also let you further expand your employee’s coverage.
Employees also enjoy a number of benefits from group insurance plans:
1.) Lower monthly premiums compared to individual health plans.
In almost all cases it’s less of a financial burden for employees to opt-in to a group health insurance plan than to pay for a plan themselves. Individual health plans tend to be more expensive per person compared to a similar group plan.
2.) Wider coverage per dollar spent.
Group health plans normally offer coverage and health benefits well beyond what an employee can expect when paying the same dollar amount for an individual plan. Group plans often cover ongoing maternity and dental care as well as provide international health coverage where an individual plan with the same premium may not.
3.) These plans are often guaranteed issue
‘Guaranteed issue’ health plans are those without consideration to a policyholder’s current health status. This is in contrast to other insurance plans where premiums may go up depending on the policyholder’s pre-existing health conditions. For many people, joining organizations that offer group health plans may be the only way they can feasibly get the coverage they need.
What does group insurance cover?
Group health insurance coverage differs depending on the type of plan employers and business owners ultimately decide to go with.
Now Health International’s basic WorldCare Essential group insurance plans provide crucial medical coverage as well as a number of optional extras. These extras may include out-patient charges, co-insurance out-patient treatment, and extended evacuation and repatriation – just to name a few.
If the maximum amount of coverage is needed, Now Health also offers WorldCare Apex group insurance, which includes in-patient and day-patient care, out-patient care, routine and complex dental treatment, and routine maternity care. It also has a wider set of optional extras including wellness, optical and vaccination services.
Small businesses and companies on a budget can also choose Now Health’s SimpleCare plans. This includes the SimpleCare CORE medical insurance plan, which covers common in-patient contingencies, including hospitalization, surgery, and cancer treatment. This plan also covers medical evacuation and repatriation. The SimpleCare 100 or SimpleCare 250 plans provide even more comprehensive coverage, including maternity and dental care for your employees.
Be sure to contact us to learn which care plans are most suited for your business.