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.

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The money that a business or other organization uses to pay for group health policies is far from wasted. Most employees recognize the importance of health insurance and are aware that coverage can be expensive. As long as a business or organization explains the coverage a policy provides, people will generally appreciate the business or organization’s investment in the health of its employees and their families.

(A few other groups may also offer a group health policy. Sometimes coverage is included in membership, and other times it’s offered as an option for members. How premiums are split in these situations varies).

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What New Jersey Businesses and Organizations Offer Group Health Coverage?

Because employees often consider whether an employer’s benefits package includes a group health policy, many businesses and other organizations in New Jersey offer strong group health policies. Employers throughout the state and across many industries provide this type of coverage.

How Much Group Health Coverage Do Businesses Typically Provide?

The amount of group health coverage that New Jersey businesses and organizations offer their employees varies a lot. Some businesses and organizations offer only basic protection, and providing more robust coverage is beyond their budgets. Other businesses and organizations offer lots of coverage, sometimes even providing primary and secondary group health policies. How much coverage a particular business or organization is able to provide often depends on its finances and how skilled, or specialized its employees are. 

Are There Different Types of Group Health Policies?

Health insurance policies have many different components that affect how much coverage they provide. Businesses and organizations can look at policies with different deductibles, copays, coinsurances, and other differences to find one that meets their needs while staying within their budget.

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How Can Businesses Get Group Health Insurance?

There are many laws regarding group health insurance, and policies are frequently complex. Therefore, businesses and organizations that want to offer a group health policy to their employees should work with someone who is an expert in group health policies. An advisor who is located in New Jersey will be able to assist with selecting and setting up a policy so that it meets all legal requirements and provides the coverages that a business wants to give its employees.

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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