Many employers offer group health benefits to qualified employees. In many cases, this is considered one of the more important employment decisions made by a prospective employee. Because comprehensive health coverage has become so expensive, many employers will use their group health insurance as a major recruiting tool. The benefits are tax deductible for the employer and benefits are non-taxable for the employee.
Although comprehensive coverage is offered, most all plans are subject to co-pays, deductibles and coinsurance. Although some employers will pay 100% of the employee premium, most pay 50% to 75%. Many companies will offer different levels of coverage so that the employee can elect the amount of coverage they are willing to purchase.
Coverage for a spouse and children is a different matter however. In many cases, an employee may be able to save money by purchasing a policy for the spouse and children in the individual marketplace. Since the employee is usually getting the top level of benefits paid for primarily by the employer, the cost for spouse and children coverage may be more than the household can afford.
There have been many changes to the Health Insurance playing field since the introduction of the Affordable Care Act. In most cases employer sponsored plans already met the minimum coverage requirement however, the viability of employer sponsored health plans may be in jeopardy as the Affordable Care Act makes its way through the business environment. Employers may decide that it is more economical to pay governmental penalties than to continue offering this valued benefit to employees.
Since the cost of health care has continually increased over the last decade, insurance companies have increased rates to accommodate this increased cost of healthcare. The industry has witnessed employers offering higher deductible plans to make the benefits more affordable to the employer and employee. Unfortunately, this has increased the employee’s share of healthcare costs and family budgets are more strained than ever.
Offering a health insurance program to your employees is not something to be taken lightly especially when you consider all of the options that are available as well as the potential fines under the Affordable Care Act. Discuss your needs with a qualified agent today.