What is Group Health Insurance?Back
Why is Health Insurance Important?
It’s no secret . . . medical expenses can be exorbitant. Just take these two examples into consideration: The average hospital stay in the U.S. costs $5,220 per day. And the average cost of a non-emergency hospital visit was $2,000 in 2020. Medical insurance is critical to help individuals pay for these, and many other, health-related expenses.
But health insurance isn’t only important for unexpected trips to the emergency room or long stays at a hospital. While these may have been the original intent of health insurance, those situations may now be the “exceptions,” rather than the “rule.” Health insurance can be a catalyst that drives individuals to seek important care, rather than putting it off for the inability to pay. And going without regular care only leads to larger health problems.
For instance, forgoing regular dental checkups can lead to cavities, root canals, gum disease and more. Avoiding annual physical exams may put you in harm’s way of some chronic illnesses. And dodging a doctor’s visit when you’re sick might later become a health “mountain” instead of a “molehill.”
Indeed, health insurance isn’t only needed for catastrophic events anymore.
What is Group Health Insurance?
Group health insurance, also referred to as employer-sponsored group health insurance, helps employees pay for these and other health care expenses. This type of insurance, as the name implies, can only be purchased by groups—not individuals. And group health insurance is typically less expensive for members than individual health plans since the premiums are split between a company and its employees.
Plus, when you do a dollar-for-dollar comparison between individual and group health insurance plans, you’ll usually find better coverage with group health insurance plans. That’s because the insurer’s risk is spread across multiple participants.
Let’s run through why group health insurance provides benefits to both employers and their employees.
What are Some Group Health Insurance Benefits for Employees
• Premiums are typically less than individual health plans
• Premiums are usually paid pre-tax, meaning taxable income may be reduced
• Group health insurance typically offers better coverage than individual plans
What are Some Group Health Insurance Benefits for Employers?
• Monthly contributions to employee premiums may be tax-deductible
• Some small businesses may qualify for tax credits
• Group health insurance benefits can help recruit talent
Fringe Benefit Analysts
At Fringe Benefit Analysts, we work with our clients to simplify benefits management, reduce costs and save them time. Our devoted team of experts can help with any group health insurance needs or answer any questions you may have. Along with group health insurance, we are experts in dental, vision and disability options for you and your employees. Contact us today with questions or to arrange an insurance evaluation.Follow us on social media!