Group health insurance is a policy you purchase to offer to your eligible employees as a benefit. The benefit of group health coverage for your employees is a reduction in premium costs — premiums may be lower for the group than they would be if employees purchased an individual healthcare policy. Plus, as an employer, you may also share in the premium costs or pay them entirely, providing even further benefit for employees. For you as an employer, healthcare coverage helps your employees stay in good health and get the preventive care they need to fend off many common conditions that can affect their ability to work.
There's more to consider when choosing a healthcare coverage plan for your employees than cost. It's important to compare plans carefully in terms of coverage, premium, deductible, provider network, coinsurance and copayment amounts, prescription coverage, and other factors.
Depending on the size of your company and the mix of employee healthcare needs your plan must meet, you may offer more than one choice in healthcare plan. For example, a young, single worker in good health might choose an option with a lower premium and higher deductible, while someone who is taking care of a family or managing a chronic condition might be willing to pay a higher premium for more complete coverage.
Common Healthcare Coverage Terms to Know: