Other Free Encyclopedias » Online Encyclopedia » Encyclopedia - Featured Articles » Featured Articles: Lake Havasu Homes For Sale - Searching for Lake Havasu Homes for Sale - Homes for Less than $100,000 to Cell Phone Compare - The Great Smart Cell Phone Compare - Droid

Small Business Group Insurance - Small Business Group Insurance Options: How to Best Insure Your Employees - What is Group Insurance?

health hra amount accounts

Group insurance is the most widely recognized form of company-provided insurance coverage. A company is able to negotiate much better deals on insurance rates than individuals can, because they are (forgive the expression) “buying in bulk”, enrolling many people under one umbrella. Because it is a group policy, it is much easier for employees and their dependents to obtain health insurance even if they have preexisting medical conditions that would normally prevent them from doing so.

Businesses usually split the premium amount with employees. The amount that the company contributes obviously changes from business to business, but it is usually at least 50%. The amount that your company contributes may be tax-deductible, which can be a big help.

Group insurance has long been the most common method for Americans to receive their health care coverage, and it is still recognized as such. However, because it does carry increasingly expensive premiums, more and more small businesses are beginning to explore other options, such as Health Savings Accounts and Health Reimbursement Accounts. See more details on these below.

Where to Get Group Insurance Quotes for Your Small Business

You can find local small business group insurance providers in your phone book or online in no time at all. A simple internet search will yield plenty of options, one of the most popular of which is eHealthInsurance.com. Simply enter your zip code, the probable number of employees that will enroll, and the type of insurance you are looking for, and they will deliver quotes from multiple local providers for you to peruse. Compare the costs and benefits carefully to be sure you understand everything that your employees will receive, and choose the one that best fits your needs. This site also offers the option of talking to a licensed insurance agent if you have any questions on a policy.

Other Options For Group Insurance For Small Business Employees

As stated before, with rising health care costs becoming too much to bear for some companies, many are switching to alternative options. The biggest alternatives currently in use are the HSA (Health Savings Account) and the HRA (Health Reimbursement Account). There is a key difference between the two that we will discuss here.

HRA
An HRA lets the employer set up an account with a set monthly contribution, which it pledges to its employees for use on qualified medical expenses. The employer has a fair amount of leeway in determining how the money can be used, how accounts are carried forward, etc. There is a lot of paperwork involved with these accounts, so many people opt for third-party solutions such as CoreDocument.com’s HRA Software, which automates a large amount of the process.

HSA
Many companies have begun offering Health Savings Accounts, even if they already have a group insurance plan. An HSA is primarily owned and controlled by the employee, whereas the HRA is primarily controlled by the employer. Tax-deductible HSA contributions can be made by the employer, the employee, or both, making it a rather flexible tool to offer employees who want extra assistance for covering medical procedures. eHealthInsurance.com also offers assistance for setting up HSA plans.

We hope you’ve enjoyed this overview of Small Business Group Insurance and the main two alternatives. This information can help you decide on the best path for you and your business. Good luck!

Small Ceiling Fan - Small Ceiling Fan Buying Guide [next] [back] Slim Cd Jewel Cases - Slim CD jewel case are small pieces or portable perfection

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or