Operating A Small Business: Frequently Asked Questions About Group Health Insurance
Many small business owners mistakenly believe that they are unable to offer health insurance benefits to their employees due to their relatively small budget. However, with the use of group health insurance plans, this may not be the case. Below you can find the answers to some of the most commonly asked questions regarding these insurance plans.
How do group health insurance plans work?
The way group health insurance plans work is really rather straightforward. In exchange for purchasing a policy as a group rather than purchasing individual policies, you will receive a discounted rate from the insurance company. This discount is made possible since the insurance company spreads out the risk associated with issuing the policy over all the active members of your group rather than assessing each person's individual risk factors.
What are some of the benefits for small business owners who choose to offer group health insurance plans?
The primary benefit that you will enjoy as a small business owner is the ability to attract highly qualified candidates to work for you. This is because many qualified workers choose to work for larger corporations in order to gain access to employee benefits such as employer-sponsored health benefits. With the use of group health insurance plans, you will be able to offer these benefits even if you do not have a large budget available for sponsoring employee benefits packages.
How can the employees of small businesses benefit from taking advantage of group health insurance plans?
In addition to enjoying lower monthly premiums, your employees can also benefit through the ability to pay their health insurance premiums using pre-taxed wages. This is one of the advantages that make employer-sponsored health care plans so popular.
Do you need to have a certain number of employees in order to qualify for group health insurance?
While each insurance company has the right to set its own rules regarding the number of active members in a group, most insurance companies do not require you to have a certain number of employees in order to qualify for group health insurance plans. However, you will likely find that the larger your group is, the lower your rates will be. For this reason, you may wish to consider collaborating with other small businesses in your area when purchasing these policies in order to form a larger group base.
Contact a company that offers group health insurance for more information.