What is Group Health Insurance?

Many people obtain health coverage through a group health insurance plan that’s sponsored by their employer. Such plans often account for a significant portion of employees’ overall compensation, and the plans can greatly affect how highly employees value their jobs. For businesses that want to attract the best talent possible and keep employees loyal, offering group health coverage is often essential.

Group health insurance is a health insurance policy that provides coverage for a specific group of people, such as a business’ employees. Plan participants generally all receive the same coverages, and they normally split their plan’s premiums equally. Thus, low-risk and high-risk individuals both usually pay the same amount, and they receive the same health insurance coverage.

(Employees sometimes pay different premiums based on whether they want coverage for themselves, themselves and their spouse, themselves and their children, or their whole family. Employees’ medical conditions, however, don’t usually affect how much they pay for group health coverage.)

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Who Pays for Group Health Plans?

Group health plans may be offered by businesses, governments, nonprofits, or other organizations. The business (or organization) that sponsors a plan typically pays a significant portion of the plan’s premiums, while employees pay the remaining premiums that aren’t covered by their employer. In this way, the cost of a group health plan is usually shared by both businesses and employees.

The money that a business spends on group health premiums is hardly wasted. Employees generally understand that health insurance coverage is expensive, and they’re normally very grateful for the premium payments made by their employers.

What Businesses Should Consider Offering a Group Health Plan?

Because the vast majority of people value health insurance highly, many businesses and other organizations may want to offer a group health plan. Regardless of where a company is located or what industry it’s in, it can likely help increase employee appreciation -- and possibly reduce turnover -- by giving employees access to a group health plan.

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How Much Group Health Coverage Do Businesses Normally Offer?

The amount of group health coverage that businesses offer varies. Some businesses are only able to offer employees basic levels of coverage, while other businesses have budgets that support a lot more coverage. What amount of coverage a specific business can afford to offer depends on both the business’ financial situation and its employees’ level of expertise.

Are Different Types of Group Health Plans Available?

Group health plans have many different components that impact how much they cost and how much coverage they afford. Premiums, copays, deductibles, coinsurances, limits, and other details make each plan unique. By comparing lots of plans, businesses can usually find a plan that’s tailored to their specific needs.

Do Group Health Plans Include Dental and Vision Coverage?

Most group health plans treat dental and vision coverage separately from group health coverage. Dental and vision coverage may be offered as an add-on insurance option, but the plans themselves typically remain distinct from health plans. Dental and vision plans normally have their own networks of providers, premiums, and coverages.

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How Can Businesses Get Quotes for Group Health Insurance?

Businesses that are interested in offering employees group health insurance should contact an independent insurance agent who serves their state and is familiar with this form of insurance. An independent agent will be able to request quotes for group health plans, and they’ll have the expertise to compare different plans’ coverages. With an agent's help, finding a group health plan can be much more painless.


Meet Your Industry Specialist

Terence J. Gorman

During his 25+ years of experience in the insurance industry, Mr. Gorman has made it his mission to provide his clients with service levels that exceed all expectations. Client satisfaction has always been the foremost goal.

Prior to joining World Insurance, Terence worked with large market groups, 5,000+ employees, designing, underwriting and implementing their employee benefits programs. Throughout his career, he has helped multiple organizations and their employees save hundreds of millions of dollars, while improving plan efficiencies and increasing employee satisfaction.

"My team's success historically comes from organic growth and retention. We pride ourselves on service and measure success by the referrals our clients happily provide."

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