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The Difference Between Group and Individual Coverage

Should Your Business Offer Group Insurance?

If you own a small business, you will want to consider different insurance options for your employees. Many people will think about group health insurance plans, but they will also consider individual health insurance reimbursement. Here are some details on both to help you decide what’s best for your business.

Individual Health Insurance

This type of health policy is something that each employee purchases for themselves or for their family. The insurance agent you work with can help your employees go through the plan options and premium costs. Employees within the same company may be on different plans, depending on what they choose.

Group Health Insurance Coverage

This type of policy is purchased by the company and offered to employees who work under the company name. This is the most common coverage for larger companies, but some smaller businesses are choosing it as well. The employer gets to choose the plan that they offer to employees and they generally split the cost of the premiums.

The Biggest Difference

The biggest difference between these two plans is that the employee chooses their plan with individual health insurance while the employer chooses it in group health insurance. The overall cost per year for single coverage is generally cheaper on group insurance plans since they incorporate many individuals and not just one person. With individual plans, the company still pays some of the premium, generally, through reimbursement programs.

What’s The Budget?

In order to decide which way to go for your company, you will need to think about your budget and the percentage of the premium costs you’d like to cover. You’ll also want to gather information about your business and how many employees you have now and how many you plan to have in the future. If you are self-employees, you can get an individual plan just for you. Or you can band together with other self-employed people for a group plan. Think about the general health needs of people in your demographic and the demographic of your employees.

Don’t Stress The Decision

Finding health insurance for yourself and your employees can feel overwhelming. There are a lot of moving parts to running a business and you might feel stressed about making the right decision. Everyone should have health coverage and the rules and options are often hard to understand. You might even feel at a disadvantage as a small business owner because you don’t have an HR department to investigate and back you up. But you can get professionals on your side to help you make the best decision for your business needs.

Get That Group Insurance Coverage

No matter how large or small your company might be, you have benefits in getting health insurance coverage for employees. You’ll improve recruiting abilities and help your employees remain healthy and productive. You’ll enjoy increased job security and tax credits along with other benefits. Now, all you have to do is talk to the professionals at Nickerson Insurance Services, Inc to find the best options for your situation. With over 50 years in the business, it’s easy for us to see the right path for any business.

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