Group health insurance is how many Americans receive their health insurance benefits. These policies are provided through their employer or another organization usually, meaning the risk of insuring each individual is spread across a larger group of people. This results in lower costs, which the policyholder further supplements. 

If you are looking to implement group health insurance for your organization, price is likely a factor you’ve been thinking about. Here is everything you need to know about the cost of maintaining a group health insurance policy. 

What is Group Health Insurance? 

Health insurance provides financial assistance to plan participants who need to pay for medical treatments. Group health insurance policies cover multiple people, usually the employees of an organization. The costs of coverage are shared by the organization that owns the policy and the individuals who participate. Usually, group health plans are offered as a benefit to employees, ensuring that they and their families are healthy enough to continue working. 

How Much Does Group Insurance Cost?

Group health insurance cost an average of $6,690 per individual in 2017. Employers usually pay around 82% of that cost. Though, family coverage has a different cost usually. In small businesses, a third of all workers pay more than half of the total cost of their family insurance plan. This makes sense, because family coverage includes more than just the worker themselves. 

How Much Should You Pay?

The best rule for purchasing small business group health insurance plans is to keep the cost between ten and twenty percent of your company’s total revenue. This is important because taking on any greater amount of obligation could result in the annual inflation of healthcare plans costing more than you intended later on. 

It is also important to consider how much each employee is paid when choosing a health insurance plan. If you can keep the cost of a plan to an amount comparable to ten percent of the average employee’s income, that could be a good benchmark for deciding how much expense is reasonable. Of course, you may need to make adjustments based on how much your company is contributing to the premium payments. 

Choosing a health Insurance Plan

Better Insurance Management offers a vast array of insurance solutions for individuals and small businesses. If you are looking for a group health insurance plan, give us a call to find out what your options are. Our team is glad to help with any insurance-related tasks.