Coventry Health Insurance of Georgia (GA) | Health Insurance Georgia | How does Group Health Insurance work in small businesses?

Health Insurance Georgia

How does Group Health Insurance work in small businesses?

A group health insurance plan is typically chosen by the employer, and then the employees are asked to enroll. The employer normally contributes at least 50% toward the cost of the group health insurance premium. The employer may also give toward the cost of dependents' group health insurance premiums as well.

Why consider providing Group Health Insurance for my employees?

There are benefits to you when you utilize group health insurance for your company. First and foremost, this has great value in the consideration of your employees; not only those currently in your employ, but also high quality prospective employees you wish to attract to your business. There are a number of surveys which reveal that employees value their group health insurance benefits at work almost as highly as their pay! Therefore it stands to reason that offering group health insurance benefits may make hiring and keeping the best employees much easier.

Some small business owners don't have health insurance coverage for themselves. They may not realize that it may be cheaper to attain group health insurance via a company than it would be to purchase individual health insurance for themselves and their families.

Another consideration for group health insurance is the benefit of tax incentives you may qualify for when you offer a group health insurance plan to your employees. When deciding how affordable a group health insurance plan would be for your small business, you should know that businesses can usually deduct 100% of premiums paid to employees. Also, payroll taxes may be reduced as a result of including group health insurance as part of a benefits package. A big benefit for the employee is that the amount they contribute toward their group health insurance premium is with pre-tax dollars.

Does my business qualify for group health insurance?

Criteria for eligibility for group health insurance vary somewhat between insurance companies and states. However, your company will most likely be able to attain group health insurance if it can demonstrate certain qualifications. The company must be a bona fide business and have this verified by a license or articles of organization/incorporation. There is also a minimum percentage of what the employer must contribute toward the group health insurance plan as dictated by the insurance company. Finally, the business should consist of at least two employees, partners, or owners and this should be proven with tax return documents or other official tax statements.

What type of group health insurance for my company?

There are many variations of group health insurance plans that differ from company to company. However it my benefit you to consider what recent studies have discovered about workers and their group health insurance. Apparently, American workers value a more comprehensive group health insurance plan- so much so that they will stay employed with a company in order to keep a comprehensive group health insurance plan.

Thus, this perceived value for the employee translates into a great incentive for the employer who wants to keep the turnover rate of employees low. Although the cost of providing this type of and group health insurance coverage has seen a rise in the last few years for small businesses, the cost of not providing it may prove to be a more adverse choice.

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