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Is Group Health Insurance Right For Your Business?

May 17, 2021, by New City Insurance

female and male elassmates celebrating office project successEmployees often obtain health insurance coverage through their employer. This is known as group health insurance coverage and consists of numerous employees covered under a single health insurance policy. When employees are pooled together to acquire insurance coverage, they can enjoy lower premiums compared to individual health coverage as the risk is spread out among a group of members.

Although there are many benefits to acquiring group health insurance, it is not suitable for all businesses. There are several things that business owners should consider before deciding to purchase this kind of insurance.

Advantages Of Group Health Insurance

Knowing what makes group health insurance a popular choice for businesses is the first step in deciding if group coverage is right for a particular business. One of the biggest benefits of group health insurance is the cost savings to organizations and their workers. Many employees cannot afford individual health insurance policies but can afford lower-priced group coverage for themselves and their families.

Business owners can enjoy certain tax incentives when they offer health insurance coverage to employees. These tax incentives are available to eligible employees in the form of a small business health care tax credit. Employees can also enjoy certain perks when they enroll in an insurance plan. Group coverage often offers better plans than individual health insurance, and there can be more coverage for preexisting conditions.

Employees are generally not required to undergo regular checkups, and there is no waiting period before coverage begins. Offering group health insurance can also be an excellent recruitment tool for businesses. When undergoing the job search process, many candidates look for benefits like health insurance. If competitors offer better coverage options, a business may lose an opportunity to bring new talent to its workforce. It can also help create a more positive work environment and, overall, more satisfied employees.

Problems With Group Health Insurance

With many options for health coverage on the market, business owners must analyze their unique situation to determine if group health insurance is the best option. beautiful businesswoman shaking hands with businessman

Although it is generally more affordable than individual policies, it can still be a major financial decision for small businesses. Not all businesses can afford group coverage and may decide not to if they are not legally required to provide insurance to employees. Some businesses may not have the time or workforce needed to administer and manage this kind of insurance effectively.

Group health coverage is not just a costly endeavor but can also be complex. Any business that chooses to offer coverage to employees must consider the renewal requirements, regulatory changes and other aspects that may require extensive time and commitment. Companies that choose to provide insurance often have to hire a dedicated team to handle all aspects of coverage.

Not all businesses meet the eligibility requirements for purchasing an insurance policy. Insurance companies have minimum participation requirements that vary by state, but oftentimes at least 70 percent of a business’s employees must agree to enroll before coverage is provided. Small businesses may have trouble getting enough employees to participate in the coverage and businesses that face high turnover rates may encounter drops in participation rates.

When shopping for insurance, businesses may have difficulty finding a policy that fits the needs of all employees. This is especially common in highly diverse workplaces with employees of all ages and with different health conditions or injuries. With a broad range of ages and unique healthcare needs, it can be tough to find a highly accommodating policy. Remember that there is no one-size-fits-all approach to insurance.

Alternative Options For Health Insurance

Group health insurance is a popular option for many businesses but it is not the only option available. Alternatively, small businesses may want to consider self-funded plans or health reimbursement arrangements.

Self-funding can be an effective way to save money as employers are responsible for paying claims out-of-pocket as they arise instead of paying the insurance company a predetermined premium for a group plan. business people group team happy showing teamwork and joining hands

A health reimbursement arrangement is a tax-advantaged and affordable option where employers reimburse employees for any medical expenses or individual insurance premiums on a pre-tax basis. Employees are responsible for paying the doctor’s office or insurance company directly. An employee then makes a claim to be reimbursed for the money they paid out tax-free.

Speak With An Insurance Professional

Group health insurance involves many complex components, such as deductibles, copayments, coinsurance and premiums. Each policy is different and the amount that a business may pay for coverage is dependent on many factors, such as the number of employees. To learn more about insurance options or to speak with an insurance professional, contact New City Insurance.

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Filed Under: Group Health Insurance,  Insurance

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5.0
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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