What is Group Health Insurance?
Many New Jersey residents get their health insurance coverage through an employer-sponsored plan, and group health coverage often accounts for a significant portion of employees’ compensation packages. For both current employees and prospective employees, whether a business offers group health insurance can make a major difference in how highly they value their jobs. For businesses, providing robust group health coverage can be essential in attracting and keeping top talent.
Group health insurance is a type of health insurance that insures a defined group of people. In most cases, group health policies’ premiums are divided among all covered participants so that high-risk individuals pay the same rates as lower-risk individuals. (Employees may pay different rates depending on whether they want coverage for only themselves, themselves and their partner, or their whole family).
Who Pays a Group Health Policy’s Premiums?
Group health policies are usually made available by businesses, governments, and nonprofit organizations, which offer a policy’s coverage to their employees. The business or other organization sponsoring the policy typically pays a significant portion of the premiums, but employees may also be required to pay for a good percentage of their coverage.