If your company has 50 or more full-time employees, you are legally required to offer health insurance, typically called a group health plan. In some states, "large group" health plans are identified as covering 101 employees or more. It can be easy to think of this requirement as a burden, but try to avoid this mindset. The benefit of good health insurance is good for your employees, and good for your company.
Benefits for Businesses That Offer Large Group Health Insurance
For many employees, the benefits offered by their employer are just as important as the salary they earn. Health insurance can be costly, and employees rely on their company to help them afford this important benefit for themselves and their families. Being required to offer this perk to employees is a benefit to your company for many reasons:
- Keep the employees you have. Providing employees with excellent health insurance options and not just the bare minimum makes them feel valued and worthy of good health insurance. Excellent, long-term benefits create loyal employees.
- Attract new talent. Job seekers are looking for positions that fulfill many needs, one of which is solid health insurance. Strong plans and multiple options can make your job offer that much more attractive to potential new hires.
- Support a productive team. When employees have reliable health insurance, they use it. Preventive care is just as important as getting the care that's needed in times of sickness. Access to good health insurance improves the quality of life of your employees. And better healthcare translates to fewer sick days, more time on the job, greater productivity, and a better bottom line.
The large group medical insurance your company makes available to your employees must be affordable, minimum-value group health insurance. Without this benefit, your organization could incur government penalties.
In many cases, large group health insurance rates end up being lower than individual rates. And employees end up with lower health insurance costs, which improves your benefits package tremendously.
Elements of Large Group Health Insurance
The rates for large group health insurance are affected by big claims. One large claim can heavily impact the renewal for the following year – for example, an employee undergoing chemotherapy for a cancer diagnosis. Your current rate may not be altered by this major cost, but as a large group this claim can make a big dent.
In general, large groups typically use average rates to cover employees. These tiers of coverage can include:
- Employee only
- Employee and spouse
- Employee and children
The SHOP Marketplace that figures prominently in small group health insurance plans also affects large group insurance. States have the option to allow health insurance issuers of coverage in the large group market to offer coverage through the Marketplace. States that choose this option set into motion rating rules that also apply to all large group health insurance coverage. What does this mean? These rules standardize how products can be priced by health insurance issuers. As a result, premium pricing becomes more fair and pricing is made more transparent.
In general, large groups are subject to medical underwriting or experience rating. Some may determine their rates based on the demographics of potential insured individuals, from average age to dependent status, gender to location.
Competitive Large Group Health Insurance for Your Company
Large group health insurance can be a complicated matter. Administering group plans in-house requires homework, great understanding, and nearly a full-time representative dedicated to insurance issues. Even though you may be part of a large company, you may not care to designate resources to manage health insurance purposes alone.
The Benefits Group does the work for you, helping you identify competitive plans and robust options for your team, while connecting you with knowledgeable plan administrators who are prepared to develop customized and creative solutions for your company's large group health insurance benefits. Contact us today to speak with one of our benefits consultants.
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