We all know the old adage “a happy team is a hard-working team”, but sometimes it can be difficult to keep your team happy. And while you can’t control what happens to them outside of the ‘office’, you can help your employees feel happy with their work lives.
One of the best ways to make sure your team feels valued is to make sure they have a range of benefits — from the must-haves to the “oh, nice touch”. Group health plans are one of those benefits. Group health plans are employer- or group-sponsored benefit plans that provide healthcare to members and their families.
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What every SMB needs to know about group health benefits
Group health insurance plans offer medical coverage to all employees of your company. Supplemental health plans — such as dental, vision, and pharmacy — are also available separately, or they can come in a bundle depending on the insurer you choose.
PEOs are able to charge lower premiums on group health plans due to the shared risk involved between the insured parties. That means members can enjoy affordable insurance, which protects them from any unexpected costs that come with medical issues.
Most insurers offer group health benefits plans to companies with one or more employees. However the type of plans on offer may vary depending on the size of the business. The average group health insurance policy costs around $7,400 per year, with employers typically paying approximately 80% and employees paying the difference.
7 benefits of group health benefits to an SMB and its employees
A group health plan makes sense for employees and SMBs alike. Let’s look at what you all stand to gain, looking at the benefits to the company first…
Employees feel valued
Lack of appreciation is one of the biggest reasons why employees leave their job. Once upon a time, workers were pretty happy to get their paycheck and that was that. These days, though, employees realize their worth — and why shouldn’t they?
Employees, especially Gen Y and Z, now look for positions that can both financially support them and provide a positive environment that looks after their wellbeing. What better way than offering a low-cost safety net for their medical needs?
An affordable approach
Group health insurance plans are always cheaper than individual or family floater health insurance plans. This is due to the larger number of employees sharing the cost of premiums between each other, while also understanding the collective risk involved in a group plan.
A higher number of people increases the plan advantages
Many insurers extend the benefits on offer as more employees take part. The extra money coming from additional members can go towards added advantages, such as cover for pre-existing conditions, hospitalization expenses, and more.
Easy access to family health insurance
A “family floater” health insurance plan — one that covers your employee, their spouse, two children, and one set of parents — can become very expensive. However, a group health benefits plan covers immediate family members without additional premium payment.
Easy to claim
Employees covered by a group health plan don’t need to worry about endless paper trials and complex claim processes. All they need to do is connect with you, their employer, with the relevant bills.
The employer then ensures that a claim request gets approved.
No waiting period
Traditionally, insurers have a waiting period clause when it comes to pre-existing conditions, maternity benefits, and so on. As per the clause, an insured person cannot raise a claim for these conditions for a specified amount of time.
This limitation is mitigated with group health policies as coverage starts from day one.
No medical screening required
It’s not necessary for employees to take any medical tests prior to starting a group health benefits plan. This means the premium of their policy isn’t at risk of changing — the coverage is similar for all the employees irrespective of their health status.
How a PEO can help you access group health benefits
A PEO — Professional Employer Organization — can assist in selecting group health plans, then support clients to make sure the plan runs smoothly for them. PEOs can also offer medical savings accounts and other health benefits such as dental and vision plans that require no contributions from the employer.
The PEO can find and manage a group health plan on behalf of the employer. Some PEO’s may even manage benefit plans that employers may already have in place. Having a PEO manage your company’s group health insurance plan can offer you a dedicated team to assist with communications, as well as online benefits enrollment, pre-tax elections, plan summaries, and Exchange Notices.
The services that a PEO can offer varies between companies, though most offer the following services:
- Eligibility notifications for adding newly hired employees
- Processing employee enrollment, life change, and termination requests
- Administering COBRA
- Reconciling bills and providing timely payment to carriers
- Managing escalated billing, claims, and service issues
Group PEO Health Insurance Plans are ACA Compliant
Employers of 50 or more full-time and full-time equivalent employees are required to offer employee health benefits. PEOs can work to discover unique ways to cut costs with carrier incentive programs, alternate funding, and MEC plans. A MEC plan can offer employees 100% coverage for wellness services and immunizations. PEOs help employers stay compliant with state and federal regulations such as ACA, COBRA, and ERISA, too.
Keep your team happy and protected with a hand from MartinoWest
Growing a business can be an incredibly difficult task, especially in these chaotic and uncertain times. That’s why at MartinoWest, we take the hassle out of your everyday life with our personalized, simple, and worry-free PEO bundles.
Healthcare is a primary concern for employees — even more so during the current landscape. Employees want to feel valued and protected, and they’re not afraid to leave a position that doesn’t offer that.
Get in touch with us today and let’s find the best PEO partner for you (and your teams!).