Benefits of a Group Health Insurance Plan
- Risk pool advantages. Group health insurance policies help spread risk across a pool of insured individuals. This benefits the group members by keeping premiums low, and insurers can better manage risk when they have a clearer idea of who they are covering.
- Tax benefits for employees. In addition to benefiting from employer contributions, employees are usually paying for their part of the premium with pre-tax money, which can add up to significant savings.
- Tax benefits for employers. There are perks to being a small business owner and providing small business group health insurance. You will likely pay at least fifty percent of the monthly premiums for your employees, but you may be able to deduct these costs from your business taxes.
Did You Know?
The average small business plan deductible was 40% lower than the average deductible on an individual plan.2017 eHealth Small Business Health Insurance Report
Why Small Businesses Offer Group Health Insurance
- Business Strategy. 64% of businesses say they offer health insurance coverage because it helps them hire and retain talent.
- Responsibility For Employees. Over 40% of businesses said they felt morally obligated to offer health insurance to help their employees provide for their family.