The Importance Of Small Business Group Medical Insurance

By Jeannie Monette


Employees form the biggest asset for any business. To recruit and retain workers an attractive pay and medical cover is considered vital. Hence, offering such a cover is actually an investment. It is difficult to understand the complex small business group medical insurance.

A company is eligible for small business group medical cover if it meets certain criteria. This includes at least two full time owners and employees. It should also be legitimate and able to meet the minimum employer contribution which is half the premium paid.

Group health cover may be in two categories-indemnities and managed care plans. Indemnity plan gives a broader choice of health care providers. They are not however popular anymore. A managed care plan provides cheaper alternatives and less paperwork.

The premium is worked out by the insurer after the application is reviewed and approved. A list of factors is used to assess the set to get the particular rate. These are the size of group and general health of the set. The premium rate is constant from whichever agent you apply with.

The employee should pay a minimum of 50% of the premium paid by an employee. The employee is then supposed to pay the other half and also the value for the dependants. This value may vary from state to state and also with insurers. In a few cases the employer may pay more than the 50% or some of the costs of dependants.

It is simple to select and apply for a health cover. Start by choosing the company and talking to them about the cover for the group. Compare the quotes of the cost from different companies with the same cover. Once satisfied with the insurer to be, request for the necessary forms, fill out and send the application.

If a business has less than fifty employees it is not mandatory to provide medical cover to them. There is a tax credit from the government however if you do. Beginning 2015, organizations with full time employees who are more than 50 will have to pay for them medical insurance otherwise have tax penalties imposed.

Group medical cover do not include dental and vision but can often be added to the particular medical indemnity plan of course with additional fees. Whether providing insurance or not, it is your responsibility to remind your employees of their obligation to seek a cover. A healthy, satisfied and motivated workforce means the difference in the performance of your business.




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