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    Employer Group Health Insurance

    Benefits of Employer Group Health Insurance

    Posted on 11/10/2009 4:29:02 PM

    Employer group health insurance is meant to provide protection to a group of people. Generally, it is an insurance provided by a company to its employees as part of fringe benefit.

    Any kind of business whether large or small can actually provide this to its workers. Small employer group health insurance plans usually can cover 2 to 50 people. In individual health insurance, it requires the policy holder to pay the entire premium. As compared to small employer group health insurance, it results to companies paying the portion of the premium. Sometimes it even covers the entire premium policy. This kind of insurance has many advantages to its employees. There are two kinds of these plans – traditional and managed. There are different types of managed care plans such as Health Maintenance Organization Plans (HMOs), Preferred Provider Organization Plans (PPOs) or Point of Service Plans (POS). These health insurance plans are meant for employees as well as their families.

    Aside from providing protection, there are quite a number of employer group health insurance benefits. One is that it has lower premium. Group health insurance can have lower premium as compared with individual ones. The premium is dependent on the profile of a person. It is said that the greater the risk, the higher the premium. For group health insurance, the risk is much lower because the risk is distributed to group of people. This would make anyone consider group rather than individual.

    Employer group health insurance provides additional coverage at a very much cheaper cost. This is the best thing about group health insurance. You can add benefits like eye care, dental care and others at a much cheaper cost. Most insurance policies don’t cover pregnant women. If you request this kind of coverage on individual health insurance, this could be quite expensive. With group health insurance, you can obtain these things for a much lower premium.

    There is a law that protects people from being refused by insurance company due to pre existing condition. In large companies, group health insurance can deny past claims of any employee. However there is no employee that can be denied on the basis of past claims. For small business insurance, this is the same as well. One can’t be refused because of pre existing condition. Insurance companies are not allowed to investigate for more than a year of history. There are people who are not qualified on individual health plan but they can acquire group health insurance.

    The fringe benefit in the form of premium paid by the company is not part of any employee’s taxable compensation. In individual health insurance, a person has to pay tax. The premium that is paid by employer for insurance is deductible provided that the insurance is part of employee’s compensation.

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