Why Group Health Insurance

Why Group Health Insurance?


Human Resource professionals have been warning of labor shortages for years. An aging population with more retirees than new hires, coupled with slowing immigration and a host of other factors, means employers are increasingly finding it more difficult to hire quality employees. 



What is the solution?  While several factors are involved in someone’s employment decision, the most attractive benefits are the ones they cannot get anywhere else.  This is where group health insurance plays an important role in attracting new employees.  Group health insurance is a plan sponsored by the employer. 



Benefits of this Health Insurance

Better Networks

         Group health insurance gives employees the option of enrolling in plans that cover all the major health systems in the state.  In Minnesota, for example, that includes the world-renowned Mayo Clinic and Hazelden Betty Ford Clinic.  Most individual plans have relatively narrow networks.



Better Plan Designs

        Group plans are relatively customizable.  An employer can offer a plan with little or even no deductibles, low co-pays, and low out-of-pocket maximums.  All individual plans in the state of Minnesota have very high out-of-pocket maximums with prescription drug co-pays that are worse than individual plans.



Employer Contributions

      Employers can choose to contribute up to 100% of the premiums for group plans, and then can also fund HSA, FSA, and HRA accounts for employees if they so choose.  The minimum contribution is 50% toward the single employee premium. 



So there you have it!  Three great reasons to offer this kind of health insurance to attract and retain employees during this difficult labor market. However, the most important resource any employer can have is a trusted broker who can walk them through the complexities. Contact Schatz Benefit Group with any strategy questions or to receive quotes!