Typically, group insurance coverage is acquired by employers on behalf of their employees. Large group health plans offer superior advantages to both the employer and the employee compared to individual insurance plans. People usually try to find an insurance plan that is affordable and meets their medical needs. Finding a suitable insurance plan is daunting, considering that insurance plans have requirements that an applicant must meet to gain benefits in addition to high rates. For example, some insurance plans have an age limit, while others preclude pre-existing conditions. Large group health plans have more flexibility than individual policies, offering considerable benefits at low rates. The advantages of a large group health insurance plan and how it benefits employers and employees are reviewed below.

Lower Costs Per Person

There are numerous reasons for employees and their employers to consider a large group health plan. Unlike individual plans, large group health insurance plans attract lower costs and rates because they present a lower risk. Typically, a large group health insurance plan has 51 or more employees, and some states requiring more than 101 employees. Thus, insurance companies offer more options at lower rates because the risk is shared. The lower risks that large group health insurance plans present make it lucrative for insurance companies to offer attractive rates. Thus, employees struggling to find individual health plans that fit their budget will likely benefit from a large group health insurance plan. 

Offers Tax Incentives

The second advantage of large group health plans is the associated tax incentives. Employers who offer health insurance plans and pay part of their employees' premiums qualify for tax incentives like credit back on their taxes. The tax incentives are intended to attract employers to acquire large group health plans, ensuring their employees are medically insured. Moreover, small business owners qualify for a health care tax credit of up to 50% of their pay in premiums. Thus, small business owners should use large group health insurance plans to save on expenses, directing additional resources to other organizational functions.

Creating a Positive Working Environment

Besides the health and economic benefits, employers may acquire a large group health plan to create a positive work environment. Employees who feel valued by their employers are committed to the business, which benefits all parties. Moreover, workers offer more productivity when they have peace of mind and know their health needs are covered should they suffer workplace accidents. Thus, employers should consider a large group health insurance plan for their employees to lift their morale.

For more information about large group health plans, contact an insurance agency, like Rowland Agency.