Group health insurance plans all offer amazing benefits, but they differ based on shared cost. According to healthcare.gov, there are 4 categories of plans that are available on the SHOP Marketplace.
Let’s examine the 4 plan categories that are available:
$1· Bronze: This plan requires employees to pay 40% of care costs.
$1· Silver: Employees pay 30% of the care costs.
$1· Gold: Employees pay 20% of the care costs.
$1· Platinum: Employees pay 10% of the cost.
Plan prices will vary greatly based on the plan level chosen. The ideal plan for employees is the platinum plan, but it is also the most costly plan currently on the marketplace. Even though the lowest plan may seem most beneficial, it does not mean that it provides the best benefits or will work best for your company.
As an employer, you will pay part of the plan’s monthly premium.
Bronze is the lowest cost plan due to the fact that the employee must pay a high out of pocket expense of 40%. However, monthly premiums will also be lower, which may work better for your business’s average pay rate.
Platinum is the highest cost plan but offers the best overall coverage for employees. This plan has a very high monthly premium, yet it also has low out-of-pocket expenses. Businesses with older workers that may have frequent medical issues will find the Platinum plan to be the most beneficial.
Group health insurance plans can be very costly, so it’s important to inquire about the monthly rate for the business as well as the employees. This will allow you to judge the average cost of insurance based on the salary of your employees. Lower plans, such as the bronze plan, may be a better option if your workforce does not have a higher salary yet needs health insurance.