What Is Group Health Insurance?

If you are a small business owner, you may want to get insurance for your employees. Providing insurance benefits can help you keep employees that you have and help you hire new employees as necessary. You may run into some problems when you are trying to find the right insurance. You might want to check into group health insurance plans. 

Group Health Insurance

A group health insurance plan is one that is designed to cover a group of people. That can include employees of a business, members of a church congregation, or members of a credit union. The members of the group can get insurance at a reduced rate because the risk that the insurance company is going to assume is going to be spread across more people. The more people in the group, the bigger the discount will be because the risk will be spread further. 


The way that a group health insurance company works is that the organization gets the policy. They make the information available to their employees or members. The members of the group can then decide whether or not they want to get their insurance through the group health insurance plan. Only the group, organization, or employers can actually get the plan, the members just sign on to it. In most cases, the insurer will require that at least 70% of the members participate. However, different insurance companies have different requirements, so it's important to check out what their requirements are so that you can be sure that your company can meet the requirements. 


Some group health insurance plans offer different tiers. The tiers will include a basic level plan that offers basic coverage. Higher tiers would include more services and extra benefits. People who sign on to the group health insurance plan will pay different premium rates. However, the members or employees won't be paying the entire premium. The cost of the premium will be split between the member and the organization that has purchased the group health insurance plan. 

As an employer, being able to provide your employees with insurance can give you happier employees, and may help you to keep employees longer. Being able to offer benefits, even as a small business, can also draw more employees to your company. A group health insurance plan can help you offer insurance to your employees at a price that they can afford.  

For more information, contact a group health insurance provider near you.