Does your new job offer group health benefits? If so, that can be a really good deal for you and your family. When an employer offers a group health plan, the premiums are generally lower than if you tried to find individual health insurance. A group health plan may include medical, dental, and vision insurance coverage, as well as a health savings account. The health savings account or HSA may be used by employees to save pre-tax dollars that are then used to pay their co-pay or costs which are not covered by their insurance.
The reason group health insurance plans are more affordable is because there are more people in the plan. This means the risk is shared across more people who are paying premiums. Also, with many group plans, the employer pays a portion of the premium, usually only for the employee. The employee then pays for coverage for their family members and for any part of their premium not paid by their employer.
The employee will usually have an option of individual coverage, coverage for the employee and their spouse, and for family coverage. If a married couple both have health insurance coverage through their employer, it is recommended to compare options to see which plan is the most cost-effective or provides the best coverage for the family. Quite often, the two plans will supplement each other and the employee and their family have not out-of-pocket costs.
If you are the employer, it may be less expensive to join a group which provides health insurance coverage for your employees. Since most business owners pay at least a portion of the premium for their employees’ health insurance, it is smart to compare plans for the best options. Under the Affordable Care Act, most small businesses are provided a tax credit when they offer health insurance to their employees. If a business employs more than fifty full-time people, they may be penalized if they don’t offer their employees health insurance.
Choosing a group plan will almost always be less expensive for both the employer and the employee. Since the risk of paying benefits is spread over a larger number of people, the premiums are less while coverage is still guaranteed.
If you are an employee, it is best to check with your human resources department to learn about your group health benefits. They will be able to discuss all your options and various costs for the plans.