Group plans refer to employer sponsored health plans. Whether employing two or two thousand employees, group plans offer uniform health, medical, dental, vision, and life insurance coverage. Group plans can be custom built to offer one or many plans for their employees as part of their benefit package. Many employers find that offering group health insurance coverage not only protects their employees, it also helps attract a higher caliber of employee and aids with retention.
One of the main benefits of group plans is the fact that employees and their employers can share in the costs both for the employee and their dependents. This often allows a much more comprehensive health benefit to be obtained through the group versus the individual market. There are specific differences, however, between large groups and small groups.
Small groups are considered to have 50 or fewer employees, though at times some groups can exceed 50 employees and still be considered small group. Large groups have more than 50 employees, and even part time or seasonal employees can count towards the census. The most important distinction between the two is the fact that small groups cannot be denied coverage based on the health conditions of their employees, while carriers can deny offering coverage to a large company based on medical claims for the employees.
Benefits of Small Group Plans:
- Small groups cannot be denied health insurance coverage
- Small groups can often qualify for tax credits
Benefits of Large Group Plans:
- Large group plans are more adaptable
- Large group plans are usually less expensive for employer/employee alike based on the large number of enrollees
With the implementation of health care reform, the individual market has now become competitive with the group markets. Let Health Exchange Quote insurance agents help you determine what is best for your business. Our agents can determine not only whether a small or large group is the best option, we can also assist you with taking full advantage of tax credits and avoiding any financial penalties for not accurately securing medical coverage for your employees. We are your health exchange experts.
