As an employer or an employee, you may be wondering what the benefits are to having Group Health Insurance as a possible option for your job or business. Well, as an employee, it’s simple. More coverage! Vision, Dental, Life, HMOs, PPOs, HSAs, Retirement plans ALL having some type of discount covered by the employer. As an employer, the benefits run a bit differently. The big one is “Attraction”. Employees love these benefits and if your competing company across the street didn’t exactly offer these benefits, you could be taking all their employees and getting all the “benefits” as well. Here’s a list of all the benefits you could include in a Group Health plan:
Usually coming in expansion to a medical coverage plan, but can also be purchased separately, vision plans are one of the more basic coverage systems in health care. These plans act as a reimbursement for vision services. This system of insurance is made simple in a way where the doc is paid of beforehand, combined with a small copay from the visitor, then visiting an optometrist or ophthalmologist for quick and easy services such as eye exams, getting or exchanging your old pair of eye glasses, or getting new contact lenses.
This, as well, is generally an expansion to a medical coverage plan, but can still be purchased separate from a health insurance plan. This can cover either a partial, or full total on general dental procedures such as fillings, cleanings, x-rays, etc. Dental plans can cary heavily, from PPO and HMO plans with dental, to having oral surgery coverage, to having just the basic procedures covered.
Without this, most potential employees won’t want a part of the program in the business. Health insurance usually has the highest costs, meaning, this is also where people want the highest coverage. It’s debatable at times to have group this within a group plan, as some employees might want to stay individualized with their own plans, but for the most part, it’s best to include this. Health insurance prevents the high risks of having medical expenses. These expenses usually have a high ratio of leaving people in debt, so it’s definitely an area worth having coverage on. There are plenty of different options and programs available on the market. It’s usually best to do some personal research on which plans would be best for your employees and choose a pricing plan with the programs to choose from like HMOs and PPOs etc.
Group Life Insurance
Life Insurance can be purchased on the group with a set limit for the group or set limits by job/class. The coverage is term, is reasonably priced and is available while the individual is employed by the company. While a Group Life program can be purchased stand alone, most employers will combine as part of the overall benefits package.
401K plans are a great way for employers and the owners to provide a vehicle to create a retirement income pool. Individuals contribute a percentage of pre-tax income into a qualified plan while they are working and later receive funds from the plan upon their retirement. The investment income accumulates tax free and the recipient pays income taxes as the funds are distributed, usually at a lower rate. Individuals can start withdrawals without penalty upon turning 59 ½. Many employers will provide a matching contribution based on a formula that may include company profitability.
Disability (Short and Long Term)
This type of insurance protects those who become disabled and are unable to work. Short-term disability insurance generally pays a percentage of a disabled employee’s salary for a certain amount of time after a short waiting period of 7-14 days. Each state has different guidelines and rules regarding short-term disability; some states require benefits be provided for up to 26 weeks. Long-term disability insurance is more popular among employers. If an employee is unable to work for a long period of time due to disability, this coverage will pay a part of the employee’s salary. The amount of money that an individual will receive often depends on their position and how much coverage their company provides. Many employers will provide both STD and LTD as complimentary products.