As a business owner, trying to balance various plan benefits with your budget — while navigating the complexities of the health care system — can be daunting. From tax credits to premiums and deductibles to specific health care needs, there are a lot of things to consider when choosing the right group health plan that will benefit your employees and your bottom line.

What is a Group Health Plan?

Group health insurance plans help businesses with one or more employees pay for health care expenses. These plans are typically cost-effective for both business owners and their employees. Pre-taxed dollars are used to pay employee premiums which are generally less than those for individual health plans. Additionally, employees stand to pay lower payroll taxes and can deduct annual health care contributions when they calculate annual income taxes.

What are the Different Types of Group Health Plans?

Higher-premium plans typically offer lower deductibles for care and are well-suited for employees with known health care issues, thus utilizing more health care services. Lower-premium plans are better suited for employees who generally need standard care. Other types of group health plans include the following:

  • Fully-Insured
  • Self-Funded
  • Level-Funded
  • Health Maintenance Organizations (HMO)
  • Preferred Provider Organizations (PPO)
  • High-Deductible Health Plan (HDHP) with a savings option (HDHP/SO)

While each plan has both advantages and disadvantages, it’s important to consider the following:

  • ACA Compliance
  • Budget
  • Employees’ Needs
  • Benefits and Features

Our insurance affiliate, Doeren Mayhew Insurance Group, is comprised of advisors with time-tested experience in helping businesses find the most effective health plans for their unique needs. For more insights on how to select the optimal group health plan for your business, read their full article here.