Health Insurance Plans For Small Businesses Through Employer Group Health Plans–Are Plans Affordable?

Many small businesses have been seeking ways in which they can provide affordable health insurance for their workers. While certain tax credits and incentives have been made available for small business owners who provide healthcare coverage for their workers, there are many businesses who are seemingly left in the dark when it comes to finding an affordable health insurance plan.

Employer group health insurance programs are often chosen by business owners who are attempting to find coverage for numerous employees. While there are costs associated with any type of health insurance coverage, few employers fail to realize that group health insurance plans can be more affordable and would obviously benefit workers who may be uninsured at the present time or are having to meet the costs of insuring themselves.

When a worker must meet the costs of health insurance alone things can get quite expensive and an employee who is uninsured that may come upon a sudden illness or injury could be in a worse position. The cost of healthcare are unaffordable for the majority of men and women who may be without some form of health insurance. There have been extreme cases where healthcare was needed and the individual who was uninsured was driven to bankruptcy as a result of medical costs.

Yet, employers that have obtained employer group health insurance plans have been able to provide healthcare coverage for their workers simply because the risk that an insurer must take is spread out over a larger number of people. Simply put, from an insurer’s perspective, if one individual is paying premiums the cost will be higher due to the fact that there is a high risk that a single individual will make a claim or require some form of healthcare service in the future that may cost the insurer more money than they have collected.

On the other hand, when numerous employees are factored into an employer group health insurance plan the insurer will typically collect more in premiums than they will pay out in worker claims. Depending upon the company, the costs of providing health insurance may vary but will typically be less expensive overall than costs for workers who must provide their own insurance or pay medical costs out of pocket.

Various insurance agents can be consulted and can build an affordable plan for almost any business, but many believe that when an employer provides health insurance for their workers it pays off in the long run. Companies are able to attract a higher caliber of worker if they have benefits like health insurance and can keep current workers more loyal, which will be helpful for the business in the long run. Small business owners may also be able to claim a health insurance tax credit in certain cases which can help make providing health insurance less costly.