Covered California
Certified Agent

Why You Need Group Insurance

Today, a lot of companies provide group insurance to their employees. Essentially, group insurance policies allow an employer to provide their employees with a coverage package.

It’s the same as individual health coverage with the difference that costs are often split between the employer and their employees. Here’s everything you should know about it:

It’s a Legal Requirement

Various states in the US require you to provide some level of coverage to your workers. In a few particular areas, there’s even a minimum premium limit that the employer has to ensure so that the employees don’t bear the burden of copays, out-of-pocket expenses, and more. Most of the requirements tend to fall on employers with more than 50 employees working full-time. But considering the advantages of group insurance, many smaller businesses are also opting for it.

Save Money

For Employers

One of the biggest advantages of group insurance is that you can opt for small business plans if you’re running a company with less than 25 full-time employees. There are numerous plans available for smaller businesses, helping them take advantage of group insurance while providing them benefits. With these packages, there’s also the chance that you can opt for tax credits, including but not limited to the Small Business Health Care Tax Credit.

Any amount that you pay for your employee’s premium is also tax deductible. From a financial perspective, you have a lot to gain from offering group health insurance.

For Employees

The obvious advantage for employees is that they have access to fairly affordable group insurance plans.  Even if they can afford individual health insurance, some people require extra coverage, and group insurance provides them with that option at significantly lower costs. Moreover, the premium payments for employees are pre-tax, bringing down their taxable income.

An employer doing insurance calculations

Lower Costs

Group insurance is much more affordable than individual health insurance while providing a similar if not the same set of features. This is because the employer gets a large quote for the number of employees that will receive coverage and the cost gets split among the employees. The more people opt for coverage, the more affordable it will be for each person while still providing more options.

In some cases, you can also get higher coverage at a competitive price with the availability of better employee health insurance plans if enough people sign up for them. In most cases, the coverage available through group health insurance coverage can be a great supplementary option to an already existing term life insurance plan.

Competitive Job Listings

Among the many factors that job seekers focus on when going through job listings, health insurance is one of the main considerations. Major websites like Monster and Glassdoor suggest that after the salary, job seekers prioritize the availability of a decent health insurance package.

If an employer doesn’t provide it, a potential employee is likely going to pass up a job offer even if it comes with a competitive salary. In some cases, you can get away with providing a lower salary than the market average if your remuneration package, especially your health insurance offerings make up for the lower salary.

Employee Retention

The way people are likely to opt for a job because an employer offers them group insurance, the same way they might stick around for a longer time because they have these privileges. Healthcare is expensive and a travesty can occur at any moment causing the bills to pile up. To avoid falling into any financial pitfall because of expensive medicine and treatments, people need employer-provided coverage.

Apart from boosting retention, it also motivates workers to keep their jobs. A job with health insurance coverage is a safety net that offers peace of mind that their needs will be taken care of.

A person handing out insurance documents

Covered California Certified Agent makes it simpler for companies to find a reliable employer group insurance that works well for them. We work with various companies to help them understand their insurance options better. Our agents worked with several businesses to offer them insurance services in California. You can also get individual health insurance and dental insurance.

We make it easier to find a package that meets all your needs while being within your budget. Contact Covered California Certified Agent today to work with a reliable insurance agent in California. You can learn more about health care insurance, commercial insurance, and employer group insurance with us.