Group health insurance, the insurance that is provided through an employer, is one option of how to obtain health insurance for yourself and your family. It’s important to compare your options when it comes to signing up for health insurance, but it should be noted that group health insurance can have great benefits for both the employer and employee.
In today’s blog post from Medi-Solutions Insurance Agency, LLC we are going to explore some of these benefits. Read on to learn more, and if you have further questions about group health insurance, or any other type of health insurance, Medi-Solutions Insurance Agency, LLC will connect you with one of our independent agents.
Group health insurance plans come with some great benefits for the employer. From tax incentives to employees who are happier and healthier, it pays to offer your employees group health insurance.
As a business owner or manager, employers who offer their employees group health insurance are entitled to some tax incentives. This includes paying lower payroll taxes, as well as deducting their annual contributions to their employees’ health insurance when calculating their yearly income taxes.
Another benefit of offering employees group health insurance is that you are providing them with a higher quality of life. Employees that hold health insurance are more likely to attend annual preventative visits, which helps to ensure that any medical conditions are caught early on, or even prevented altogether with the help of their primary care physician. Additionally, employees can get health insurance for their spouse and children through their group insurance plan.
Group health insurance plans also offer a host of benefits to the employees of the company from saving money on the monthly premium to being able to pay for their insurance with pretax dollars.
Group health insurance plans tend to be less expensive than individual insurance plans, especially with a larger number of participating employees. The larger the group, more options and lower cost savings become available. Additionally, the employer generally pays a part of the monthly premium. For instance, if your employer is offering to contribute $30 a month to your health insurance plan, that means that regardless of what offered plan you choose, they will cover that amount.
Another way that group health insurance plans save you money is because your premium is deducted out of your paycheck before tax is considered. For example, if you had an individual insurance plan that costs $50 per month, your monthly premium would be $50 plus tax. However, if you have a group health insurance plan with a $50 premium, you will pay only $50. While this may not seem like a huge difference, when you consider this over the course of years, the savings becomes significant.
Occasionally, if you have a HSA group health plan through your employer, they may match your contribution up to a certain amount. Every pay period when you contribute to your HSA account, that money gets deducted pretax and put into your HSA. This saves you money on any medical expenses. However, some employers choose to match your contribution. Meaning if you contribute $20 a pay period to your HSA, your employer will as well. This means that every time you use your HSA to pay for an eligible expense, it’s like your employer is picking up half of the bill.
Ready to learn more about group health insurance? Reach out to Medi-Solutions Insurance Agency, LLC today and our helpful, knowledgeable independent agents would be happy to answer your questions.
Information is for educational purposes only and should not be construed as an offer of insurance, advice, or recommendation. The information provided is not intended as tax, financial, investment or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
Not connected or endorsed by the US Govt or the Federal Medicare Program. Medi-Solutions Insurance Agency, LLC is an independent Life, Accident and Health Insurance Agency, NJ Ref#1642311. Some plans and features may not be available in all states.
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