Is Group Health Insurance the Right Choice for Your Business?

Is group health insurance the right choice for your Marysville, CA business, or should you reimburse employees for individual plans? The answer will depend on how many employees you have and your budget. There are advantages to group coverage, but there may also be advantages to issuing individual policies in some cases.

 How Group Coverage Works

is group health insurance right for your business?With group health insurance in Marysville, CA, a single policy will cover an entire group. In this case, a single policy would cover the business and all of its employees. Dependents may also be covered.

Premiums are determined by calculating the group’s overall risk using general information about employees, like gender or age. Under the Affordable Care Act, insurers are required by law to offer group policies to small businesses as well as medium and large businesses.

If group coverage is offered to any full-time employee, it must also be available to all full-time employees. The same rule applies to part-time workers. And if dependents are included in the policy, they must be covered until the age of 26.

As an employer, you can choose to cover the entire cost of the health insurance plan, or you can require your employees to pay a portion. Tax credits are available to ease the financial burden of insurance premiums.

The Benefits of Group Health Insurance

Employees see group health insurance as a major incentive to join your team. By offering this benefit, you can improve your employee turnover rate, keeping loyal employees on board for an extended period of time.

Group plans also ensure that your employees have vital health coverage, so they can get the care they need and return to work as soon as possible.

While not always the case, group health insurance plans tend to have lower premiums because the risk is spread over a larger group of people.

Some Considerations

While group plans sometimes have lower premiums, some small business owners still cannot afford the expense of these plans. If a group plan is far out of your budget, reimbursement for individual plans may be a better option.

That being said, group plans tend to be the better option for businesses. Employers with great health insurance plans attract more potential employees and can go a long way in reducing your employee turnover rate. At the same time, tax credits can help reduce the financial burden of group health insurance premiums. A Bravos Insurance can help you determine the best solution for your business!


Contact our friendly, informative insurance team at 1-530-749-2919 or get an online quote today!