How Group Benefits and Group Health Plans Work
Nowadays, group benefits and group health plans in the work place are becoming much more affordable. They still leave a lot of room for confusion for most employees, though. Questions about price and quality of service aside, many employees don’t fully understand how they even work. So here’s a short primer to help you understand how they work.
Understand Premiums
If you are employed at a small company, you might have noticed that your group benefits and group health plan are different from the plan of a neighbor or a friend who is employed at a larger company.
The key difference is how they are priced. When you are a part of one of these plans, it isn’t just your health and well-being that you have to worry about; you also need to pay attention to the health and welfare of your coworkers.
Your employer will likely obtain these plans from a number of different providers. Those providers will set their rates based on several aspects that determine the level of risk that your company’s workforce presents.
Generally, group benefits and group health plans cost less than family or individual plans because there is less risk since they are spread over more people.
Take a Look at their Policy Ingredients
Age often plays a major role in how much you can expect to pay each month for group benefits and group health rates. If your small company has a lot of older people employed, there is a great chance your policy is going to be more expensive than if you work at a firm that has younger employees.
Rates are also determined by your company’s claim history. If, for instance, your company has a large number of older males employed, plans will likely cost more because this population is more prone to cancer diagnoses, diabetes, hypertension, and heart attacks. Also, companies with a lot of young women will pay more due to the costs of maternity and childcare.
Some sectors are more likely to file claims than others. For instance, nurses, teachers, and construction workers will file more claims than, say, technology workers or retailers.
Small Companies Will Have Higher Costs
Larger firms are more likely to have lower costs for the simple reason that risk is spread out over several employees. The smaller a company is, the more age and gender will play a role in what you’re likely to pay.
A company with only a dozen employees could experience a great jump to lower group benefits and group health costs if as few as one or two employees have major surgery or have a medical emergency.
Essential Benefits Group a team of group benefits specialists who believe in elite family and employee protection with emphasis on providing insurance benefits for any budget. Shielding our client’s most important capital is our specialty. Call us today to learn more about our family insurance and group health plans.
