Get the Right Group Health Insurance for Your Small Business
Thu Feb 23 2023
Attracting the right talent to your business can be a challenge. With such a competitive job market and the normalization of job hopping, it is an ongoing struggle to retain performant employees even after you have hired them. Offering benefits to your staff is one way to encourage people to apply to open positions and stay long-term. Health insurance is one the best ways to do this considering how costly this coverage is for individuals and families. By opting for a Group Health Insurance plan, you can protect your staff and create a more attractive workplace.
How Does Group Health Insurance Work?
A Group Health Insurance plan provides similar coverage options as individual plans so your staff can opt into the coverage that is right for them. Each year comes with an enrollment period where existing or newly hired staff can decide if they wish to opt into your Group Health Insurance plan. There are some exceptions to this rule that allow new staff to be added to the plan within a certain time frame after being hired, such as the 90-day mark, but in most cases this open enrollment period is the only time your staff can make changes to their coverage status.
Group Health Insurance at a minimum covers medical needs. Employers can choose to provide supplemental coverage such as vision and dental coverage, which allows for even more retention opportunities with staff. Offering a robust coverage plan to meet a variety of health needs can be a great way to provide value to your staff and take care of them no matter what comes their way. In most cases, the employer decides on a percentage of the benefit that they will cover, leaving the remaining cost for the employee to pay for. This is usually deducted directly out of their paycheck and is based on their individual risk factor and additional covered dependents.
What Eligibility Requirements Come with Group Health Plans?
This benefit is typically extended by employers to the employee’s family, such as their partner or dependents. Dependents are usually covered up to age 26, so even adult children can remain on their insurance plan for years after legally becoming an adult. This creates an added benefit since health insurance for families can be quite the high expense, so head of household employees will have greater benefit by being able to cover their loved ones as well. Employers also often have the option to extend this coverage even to unmarried partners, which is an added bonus in modern days when couples may stay together but choose not to get married for years or for their entire relationship.
Depending on your state, your company will need to meet a minimum enrollment percentage with your staff to be able to provide Group Health Insurance benefits. This is anywhere from 70-80% of your staff, who must be on your payroll usually with a full-time status. Choosing the right Group Health Insurance plan can help encourage your staff to sign up for the benefits plan to easily continue to offer this coverage to your workforce.
What Added Benefits Come with Offering Group Health insurance?
Health insurance is an essential coverage for individuals and families of all economic levels. Many people cannot afford coverage on their own, which is why having a Group Benefits plan can be such a game-changer for employers. Group plans help individuals and families afford health insurance because you can pool everyone into one plan and create lower overall costs for everyone. The more people that opt into your group plan, the more the risk is spread and the more affordable the insurance becomes for each participant.
In addition to providing affordable options to your staff, your company can also leverage this expense to offset your revenues. Any money you pay as a business toward Group Health Insurance is tax-deductible, which is a plus come tax season. Your staff can also benefit since their contributions to their portion of the costs is pre-tax, meaning their taxable income is lower. The tax benefits are for both employers and employees, which is a bonus for everyone.
Find the Right Group Health Plan for Your Company at Nicholson & Associates
It can be overwhelming choosing a Group Health Insurance plan that will benefit your company and your staff. Our team at Nicholson & Associates is here to offer insight and guidance so you can find the best fit for your business. Contact us today to speak with a licensed health insurance agent about your options and secure the right coverage for you and your employees.