You’re looking at different health insurance options, but you’re not sure which one you should go with. Is it more cost effective to go with a small business group plan or to go with individual health insurance? We’ll be able to give you some information here to help you make a decision. But before we get into that, let’s talk about what Health Insurance is.
What is Health Insurance?
Health Insurance is a type of insurance that pays for your medical expenses if you get sick or sustain an injury. Although there are exceptions, Americans are legally required to carry medical insurance that meets federal standards or face a tax penalty.
These plans are available either as part of an employee benefits package or individually for a single person or a whole family.
What’s cheaper: Small Business Health Insurance or Individual?
On a per person basis, being part of a group plan is usually less expensive than purchasing your own plan as an individual. An eHealth report done in 2017 showed that the average Small Business Health Insurance deductible was 40% lower than for individuals and premiums were about 10% lower as well.
These reasons are:
- Group plans benefit from economies of scale or “bulk pricing” because of the number of people that are insured under the policy. This large pool of people helps the insurance company spread their risk too.
- Most employers will also subsidize part of your group health insurance costs as well.
- If you’re an employer, not only is this a great recruitment tool, you can also get access to tax benefits under the Affordable Care Act.
- As a bonus, if you’re an employee, you’re also paying for your premiums with pre-tax income – another great source of savings on top of the discounted premiums.
Not sure which one to choose? Get help!
With all the terms and conditions, Health Insurance can be a tricky thing to navigate, so it pays to get expert advice. You can learn more about your small business health insurance options here or contact us at 1-855-614-5057.
Our licensed health insurance experts will be more than happy to give you extra information, answer your questions and get you a quick quote.