What Is Employer Group Health Insurance?
Medical Expenses are increasingly tough for individuals to cover, and sometimes premiums put a strain on an individual and family. A great way to attract and retain quality employees is to offer them employer group health insurance.
Group health insurance is healthcare coverage offered to a group. In this case it is health insurance offered to employees of a particular company (employer). Group plans usually require at least 75% participation.
As the cost of health insurance has increased over the years, most employers pay a portion of the premiums and have their employees contribute a portion as well. The employer contributions change based on the company size and industry. The bulk of employers in our area pay 75% of the premium with the employee paying 25%. However, some pay as low as 50% and others pay 100%. McGregor Benefits, during your consultation will help analyze what is the best contribution for your company.
Small Business Health Options Program (SHOP). Historically the SHOP was only available from the WAhealthplanfinder. However, beginning in 2018, small business health coverage will no longer be available through WAhealthplanfinder due to no health insurance company offering. Employers can now purchase any plan and apply to the IRS for the tax credit. Health care tax credits for up to 50% of the premium are still available to qualified small business owners. Small business owners must pay at least half of employees’ healthcare premiums and have fewer than 25 full-time-equivalent employees who earn an average of $50,000 or less per year.
Talk with a broker or agent to find out about all your options on premium costs.