Group Health Insurance
About Group Health Insurance – Employer based group health insurance
Group health insurance is employer-sponsored health coverage for business owners, employees and often for dependents. The majority of Americans, about 60 percent, receive private health coverage from an employer-based group health insurance plan. Employers and employees can share the premium costs and there are special tax incentives available to businesses that provide group health insurance.
Group health insurance is essentially insurance provided to members of a group at a discounted rate by insurance providers. The insurers are able to provide this coverage at a discount because they’re taking on a pool of insureds that they can spread the risk out among. Employer-based group health insurance or small business health insurance plans is guarantee issue. This means employees do not need to fill out a health questionnaire and go through underwriting; you will be accepted regardless of your health history or pre-existing conditions.
For many employers, group health insurance is perhaps the most important benefit they offer because its tax advantages to both employers and employees and helps with recruitment and retention of employees. Employers get a tax deduction for offering coverage (payroll tax base is less) and employees benefit because the premium dollars used for benefits is from pre-tax dollars.