How Much Do You Know About Group Health Coverage?
Across the United States, just over half of all Americans receive private health insurance coverage through their employer. Because it is so standard, most don’t stop to ask the basic questions, and too many are missing the differences between accepting group health coverage compared with individual coverage. Given that your insurance package is likely the most significant part of your employment package after your total salary, it is important you know what you’re getting.
Group health coverage vs. individual coverage
When you’re discussing a group health insurance plan, you’re talking about a single policy that an employer offers to all eligible employees, and sometimes their dependents.
This type of group health insurance is fundamentally different than individual coverage because individual coverage is a single policy that is issued to a single person or family. Because of this basic difference, the insurance company calculates the risk differently for group health coverage and calculates the risk factors balanced over the entire group as opposed to just with the individual person or family.
Group health coverage also typically helps employers to find a balance between the most affordable plans and the ones that offer the greatest benefits to their employees.
Why should you accept group health coverage as an employee?
Even though your employer offers a group health coverage plan, this does not mean you are
obligated to accept—everyone can choose to buy into Government sponsored insurance,
private insurance of your choosing, or pay the penalty associated with not having insurance under the Affordable Care Act. Given the available options, what benefits does your employer-offered group health coverage afford you?
- The group health insurance plan is simple and easy to understand, and there’s no need to research and evaluate all the individual plan options every year. The jungle of paperwork can be enough to drive you mad.
- As an employee, your contributions paid from your paycheck to your group health insurance premiums are done on a pre-tax basis, giving you lower taxable payroll earnings and keeping more of your paycheck in your pocket.
- By having the same coverage as your coworkers through the group health coverage, employees can develop a sense of camaraderie as everyone is united under the same plan—you can be sure your coworkers are a shared source of knowledge and resources.
Want to find out more?
Schechner Lifson Corporation is an independent insurance agency that can offer group health insurance coverage to small business employers across the United States, with agents who have deep expertise and experience across each sector. By offering group coverage, Schechner Lifson Corporation is able to give employees the freedom of a simple and affordable insurance plan that ensure all employees are satisfied and stress-free when it comes to their health coverage. Contact us today to see how we can make sense of the often confusing world of insurance and provide you with the best and most affordable coverage possible.