3 Facts You Should Know About Group Health Insurance
Group health insurance plans offer a great opportunity for individuals to save money on their health insurance needs while still enjoying quality coverage. Unfortunately, far too many people are either unfamiliar with the way these plans work or have fallen victim to some of the common myths surrounding group health insurance plans. Taking the time to review the three facts below can help you to better understand the way these plans work and the benefits that they have to offer.
Fact #1: There Are Many Different Ways To Form An Insurance Group
It is quite common for people to believe that group health insurance plans must be made available through their employer. However, the truth is that anyone can take advantage of a group insurance plan. This is because sharing a common employer is just one way in which an insurance group can be defined. You can also choose to join forces with other people who share your same profession, your same geographical location, or common affiliation in order to form a group and take advantage of the benefits a group health insurance plan has to offer.
Fact #2: The Larger Your Group Is, The More You Can Expect To Save
Group health insurance plans are able to offer lower rates because these group plans allow insurance companies to spread out their risk across a larger number of people. For this reason, the more people you have in your insurance group, the more you can expect to save on your insurance premiums. That is why it is often beneficial to choose the broadest terms possible when determining who can enroll in your insurance plan. For example, rather than limiting membership to people who live in your city, you may want to open up membership to people who live in the same county or even the same state.
Fact #3: Group Health Insurance Plans Do Not Require Employer Contributions
One of the reasons that many small business owners do not offer group health insurance plans to their employees is that they are worried about their ability to make financial contributions to the payment of this plan. This is really quite unfortunate because the truth is that there is no employer contribution requirement associated with group health insurance plans. With that being said, the decision to offer small business employees the opportunity to take advantage of this low-cost insurance can really help small business owners to attract higher-quality employees.
For more information about group health insurance plans, contact a local company.