Group Health Insurance Information Overview

Of the insured in the U.S., over 60% are insured through an employer based group health insurance plan.  Many people are choosing their jobs solely based on the availability of health insurance through the employer.  Most of the revenue generated by health insurance companies across the U.S. comes from businesses that have employer-sponsored group health insurance plans.

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"The rising cost of health care and prescription drugs has produce a significant rise in health care insurance premiums for employers.  Because of these cost increases, employers have been forced to reduce or eliminate health benefits for employees.  In cases where benefits are cut, employees are asked to pay a portion of the premiums or in many cases; they have to pay them entirely out of their own paycheck.  Fewer and fewer corporations offer full health insurance benefits to employees due to the high cost", said Morgan Moran of Florida Health Insurance Web.

Group health insurance may be able to help employees that are staying with an employer solely because of the health insurance benefits offered.  If the employee has a pre-existing condition, they may be unable to obtain individual health insurance.  This often puts people in a position of choosing a lower wage, less desirable position so they can take advantage of an insurance policy offered to employees under a group plan where no pre-screening is required.

Offering a group health insurance plan to employees will provide long-term benefits to an employer as well as employees.  Employees that have the benefit of a comprehensive health insurance plan stay with the company longer and are employees that are more devoted.  Two of the main reasons for employers to offer a health insurance plan are to obtain good people, and to reduce their turnover rate.

"Any company with two or more employees can qualify for affordable group insurance rates.  There are eligibility requirements that apply to any company that applies for coverage, and a verification process will be used to confirm the legitimacy of the business operations", noted Moran.

The type of coverage available to an employer as well as the amount of the premiums is dependent on several factors, but the number of employees is the most significant factor.  Companies that have between 2 and 50 employees are considered small companies.  This type of company will be limited to small business insurance plans.  Companies with thousands of employees most often have custom plans prepared by the health insurance company.  Those custom plans often contain additional benefits not available to small businesses, which are made possible due to the larger size of the collective premium dollars taken in when an insurer works with a large employer.

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For other very large companies, self-insurance is an option.  In this scenario, the employer funds, manages, and administers the health insurance plan.  This can only done in rare cases with highly capitalized corporations.  Strict state regulations govern how these plans must be run as there is a significant amount of risk assumed by the employer; risk that could not only cripple a company but which could also leave dependent employees without health care coverage in the event of a collapse.