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Helpful Things To Consider When Acquiring Group Health Insurance

October 25, 2021, by New City Insurance

group health insurance conceptGroup health insurance is critical to protect and support the health and well-being of employees. It also plays a key role in employee recruitment and retention. According to a survey published by the Society of Human Resource Management (SHRM), 56 percent of U.S. adults with employer-sponsored health benefits reported that whether or not they like their health insurance coverage is a major factor in deciding whether to stay at their current job.

When shopping for group health insurance for a business, it is important to compare all options and make a decision that meets the company’s objectives and budget. Keep in mind that the Affordable Care Act (ACA) has transformed the group health insurance market and many new rules and regulations have been established in recent years. Consider the following information and tips when acquiring a group health insurance plan.

Do Not Overlook HSA-Qualified Plans

Buyers of group health insurance often overlook the benefits of health savings accounts (HSAs) and qualified high-deductible health plans (HDHPs). Here is a closer look at these two plans, how they work, and why a business may want to consider adding them to their employee benefits package.

HSA

A health savings account is a type of individually owned account that employees can use to pay for current or future health expenses. This tax-advantaged plan works similarly to a retirement account as the funds can be kept as cash or invested in mutual funds. Both employers and employees have the option of contributing to the account.

Contributions made to an HSA via payroll deduction are generally made pretax, which can reduce an employee’s taxable income. Any distributions made from an HSA to pay for qualified medical costs, as well as earnings to an HSA from investments and interest, are also tax-free.

HDHP

A high-deductible health plan is a type of health insurance plan with high deductibles and low premiums. HDHPs also tend to have higher out-of-pocket maximums than most traditional health insurance plans. It is tempting for many businesses to avoid HDHPs in favor of a low deductible plan that minimizes out-of-pocket expenses for employees.

However, many employers ultimately make the move to a high-deductible health plan coupled with a health savings account as they become familiar with the level of risk. Many employers have realized that an HDHP provides protection from catastrophic claims and preventative care is still covered at 100 percent.

A combination HSA and HDHP can also be advantageous to businesses with a younger or relatively healthy workforce. When employee health care spending is consistently low, many employers find that they could be saving on premiums while also helping employees save for future medical costs with an HSA.

Other Things To Consider When Acquiring Group Health Insurance

There are also other things that businesses should consider when shopping for group health insurance. Prior to the introduction of the ACA, health insurance rates were calculated based on the age ranges of employees within a workforce.

Age Ranges

group of people for group health insuranceEmployers would simply need to provide the insurance company with the approximate age range of their employees and would receive a health insurance quote. Today, rates are calculated based on more complex factors. Employers must provide the exact birth date of each employee, as well as spouses and dependents, before receiving an accurate quote.

Changes In Providers

Networks are also changing, making it more challenging for employees to find a health professional or stay with their current provider. Many group health plans are gradually reducing the size of their networks as a way to cut insurance costs. Employees may be unhappy that they will no longer be able to see their doctor or have to change doctors to one in the network.

Changes have also been made to prescription drug coverage under many group health insurance plans. Prescription drugs are classified into several tiers based on cost, the availability of generic versions, and how the cost compares to similar drugs.

Prescription Drugs

Employees must pay more for prescription drugs on higher tiers when filling a prescription. These higher tiers generally include brand-name drugs that do not have a generic alternative. When choosing group health insurance, review the drug tiers and determine how much employees would need to pay out-of-pocket.

Learn More About Group Health Insurance

Making the decision to offer health insurance coverage to employees is a major commitment that can provide tremendous value for growing businesses in the long-term. However, choosing the right group health insurance policy is not always easy.

Working with an experienced employee benefits consulting firm that specializes in insurance and benefits consulting can help ensure that employees get the benefits they need while businesses gain access to tax advantages and other benefits. For more information about things to consider when acquiring group health insurance, contact an employee benefits consultant at New City Insurance today.

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Filed Under: Group Health Insurance

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New City Insurance
New City Insurance
5.0
Carol Zhang
Carol Zhang
04:29 06 Mar 22
As a rapidly expanding national media organization, the employee benefits strategy and administration that New City has provided us during our growth has been invaluable. They have been proactive about informing us of the different benefit strategies available to us as we grow as well as managing the additional compliance laws and reporting requirements at each stage of our growth.
Claudia Villalobos
Claudia Villalobos
20:14 03 Mar 22
New City Insurance made navigating through all the health insurances super EASY. Their documents are highly informative, professional, and easy to work with. Thank you for making the process of choosing a health plan so simple. You guys are THE BEST!
Philippe Salas
Philippe Salas
17:02 22 Feb 22
I never expected to have a good time talking to an insurance salesman, but let me tell you Brendan was quite the treat. He was very helpful explaining the options and has a wonderful sense of humor. I hope to speak with him every time I call.
Jennifer Polito
Jennifer Polito
17:15 09 Feb 22
Super easy enrollment process. Fast and friendly customer service. If you are looking for an insurance company that is there for you every step of the way I highly recommend New City Insurance.
Rocky Salas
Rocky Salas
23:46 07 Jan 22
So friendly, I hope to speak to him again in all my future insurance needs.
Rocky Salas
Rocky Salas
23:38 07 Jan 22
So friendly and soft spoken. I hope to speak to him again in all my future insurance needs.
Jose Brena
Jose Brena
13:20 06 Jan 22
Eric Calciano has been extremely helpful in finding and selecting the right insurance coverage for our company. With many options out there Eric assisted us on getting a low cost provider saving more than 20% than from our competitors and providing excellent coverage for our employees.
Anastasia Beaverhousen
Anastasia Beaverhousen
17:05 28 Dec 21
Signing up for insurance was quick and easy. Felicity Sundsboe
SFCC
SFCC
22:08 29 Nov 21
Jeff Stoltey and his team provide excellent customer service. Jeff has always provided my company SFCC with straightforward options. I went to a larger insurance company only to RUN BACK to Jeff at New City Insurance. I recommend them to anyone needing insurance without hesitation.
Kevin Luby
Kevin Luby
19:13 22 Oct 21
Quick, easy & informative. We were able to secure quality insurance for our small business on a tight deadline. Thanks for the help New City.
Theresa Ruybol
Theresa Ruybol
19:30 01 Jul 21
Eric was so great with us. He was very patient and kind as we are a newer smaller organization who is growing rapidly. With that said, we had made our inquiry, he had great rapid response and mostly had to wait on me. Any request that we made and/or questions we had, he was great answering and helping us understand. Then when we were ready for all documents and to move forward, Brendan helped with getting that together and the two of them worked their magic on New City's end to notify me of what was needed, assist me in that process and confirming that all was complete and approved for the coverage. I just want to say thank you all again so much, as insurance has always been confusing to me, and you all made that process go a lot smoother.Thank you
Andrea Ordendorff
Andrea Ordendorff
21:06 07 May 21
I've been working with both Clayton and Brendan for well over a year. As the purchase of our dental practice was delayed well over 14 months they both patiently supported me and continued to make themselves available. When we were officially ready to sign up they made the whole process seamless and super easy. This team is highly knowledgeable, professional, supportive, and efficient! I can't thank them enough for everything they've done.
T W
T W
22:32 30 Aug 20
I love New City Insurance. I never had a good experience dealing with insurance brokers until I started working with Brendan. He’s awesome! He is patient with me and takes the time to answer all my questions. I’m very grateful for all his help and hard work!
Mary Jane Deyette
Mary Jane Deyette
00:57 11 May 20
Jeff Stoltey is so awesome...even thru my company had only two employees, he took the time each year to research and find the best plan for us. The only reason I am leaving New City Insurance is because we no longer have any employees. Thank you Jeff
Alma Ortiz
Alma Ortiz
22:25 23 Feb 20
Brendan was awesome! I couldn't figure out how to pick my plan and he returned my call on a weekend to help me. Outstansing service!
jessica kavanagh
jessica kavanagh
19:53 13 Feb 20
Brendan was so helpful I definitely recommend him if you’re in need of good help and getting it done promptly. Thankyou so much again.
Tricia DeYoung
Tricia DeYoung
19:49 13 Feb 20
I was very thankful I inquired about this info. with Brendan. He was very helpful so I understand the benefits available much better now. Thank you Brendan.
B Bayer
B Bayer
17:43 24 Sep 19
NCI handled almost everything from start to finish. Clayton and Brendan made the plans easy to understand and walked me through the application process. They got me my ID numbers before my cards arrived so that I could keep an appointment I had already scheduled. My last broker wouldn't have done that. 5 stars!
Jessica Lehr
Jessica Lehr
03:36 07 Jun 19
Our staff was interested in a health plan, but we didn't know how beneficial a solid employee benefits package would be for our business to expand. We'd lose prospective employees because they had more options for their medical insurance which was sometimes more valuable than more pay. The New City team was amazing and gave us as many affordable options as possible so that everyone had their needs met.
Mike McClay
Mike McClay
19:36 03 May 19
My employer uses New City as their insurance broker, and I'm always amazed when I call in for assistance by how knowledgeable and attentive their staff is with my requests. Their online benefits platform makes selecting insurance plans pretty darn easy. I would highly recommend their services.
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