Understanding Group Health Insurance
Group health insurance is one of the most valuable benefits a business can offer its employees. It helps attract top talent, improve retention, and create financial security for your workforce—while also providing tax advantages and stability for your company.
What Is Group Health Insurance?
Group health insurance is a type of health coverage provided by an employer to eligible employees and often their dependents. Instead of purchasing individual policies, employees receive coverage through a shared employer-sponsored plan.
Key features include:
-
Lower premiums through group pricing
-
Shared employer and employee cost contributions
-
Broader coverage options
-
Employer-sponsored plan management
-
Access to larger provider networks
How Group Health Insurance Works
Employers select one or more health plans from insurance carriers. The business contributes a portion of the premium, and employees pay the remainder through payroll deductions.
Typical process:
-
Employer selects plan options
-
Contribution strategy is defined
-
Employees enroll during open enrollment
-
Coverage becomes active
-
Ongoing management and annual renewals
Who Can Offer Group Health Insurance?
Group health insurance can be offered by:
-
Small businesses
-
Mid-sized businesses
-
Large employers
-
Family-owned businesses
-
Growing companies
Eligibility rules depend on carrier requirements, state regulations, and business structure.