Frequently Asked Questions About Group Health Insurance

Author: Gene Meyer Insurance Agencies Ltd. | | Categories: Company Pension Plans , Critical Illness Insurance , Employee Benefit Plans , Extended Health Care , Group Insurance , Long Term Disability Insurance , Uninsurable Life Insurance


To maintain productivity in the office and secure a team of efficient, satisfied employees, many business owners are exploring employee benefits packages or group health insurance plans.

However, while choosing employee benefit plans or group health insurance, you may have a ton of questions about their coverage, conditions, benefits, and costs. To ensure you have all your doubts cleared and are armed with the most accurate information available, Gene Meyer Insurance Agencies Ltd. has answered some of the most frequently asked questions about group health insurance.

1. What group health insurance coverage options can my licensed health insurance agent recommend?

When shopping for a group health insurance plan, it’s a good idea to work with a licensed health insurance agent or a licensed online marketplace. A licensed agent or marketplace can show you coverage options from different insurance companies in your area and answer your questions about the coverage offered under each. Licensed agents can provide you with personal help and advice you need to make an informed decision, and it doesn’t cost anything extra to work with an agent.

What’s more, when you’ve picked a plan, your licensed agent can help you enroll your employees in coverage. Moreover, when your annual enrollment period comes around each year, your agent can help you review new coverage options in your area to make sure you still have the best plan for your personal needs and budget.

2. How much can I afford to contribute toward monthly premiums for a group health insurance plan?

With group health insurance plans, the employer is required to make contributions toward the premiums of his or her employees. Generally speaking, employers are required to pay the health insurance company at least fifty percent of the monthly premiums for each employee, while the employee contributes the remainder from his or her pay. Typically, there are fewer rules about how much you should contribute towards the health insurance premiums of your employees’ dependent spouses or children, but be aware of the burdens they may face when it comes to covering their families under your new plan.

As a small business owner, making contributions towards the premium of your employees may seem expensive. However, when you consider the cost of supplying coverage to your employees, remember that your contributions toward their monthly premiums are generally deductible from your business taxes. Work with a licensed tax professional to better understand what the tax deductibility of employee health insurance premiums may mean for you.

3. What are the costs associated with a group health insurance plan?

There are two main categories of costs associated with any health insurance plan. First, there’s the monthly premium that must be paid to maintain coverage. Second, there are “cost-sharing” expenses, which only come into play when you actually receive covered medical care. Cost-sharing can take the form of copayments, deductibles, and coinsurance. Health insurance plans with lower monthly premiums tend to come with higher copayments and deductibles and coinsurance, while plans with higher monthly premiums tend to come with lower copayments, deductibles, and coinsurance.

4. Can I afford to bundle vision or dental care when purchasing a group health insurance plan?

If you rarely visit the doctor and don’t use prescription drugs regularly, a plan with a lower monthly premium and higher cost-sharing may make sense for you, so long as you can afford to pay your deductible in an emergency. On the other hand, if you take prescription drugs regularly or visit the doctor frequently for a chronic condition, you might be better off with a plan that has higher monthly premiums but lower copayments, deductibles, and coinsurance.

If you have any more questions about group health insurance or group benefits, get in touch with the professionals at Gene Meyer Insurance Agencies Ltd. With over forty years of experience, we can provide the best group insurance plans in Mississauga, Ontario. We offer employee benefit plans, life insurance, no medical life insurance, insurance consulting services, and travel insurance. To learn more about how we can help you, please click here or contact us by clicking here.