Meeting each employee’s varying medical demands is the primary goal of group medical insurance. The costs of diagnosis are also covered by this plan, along with pre-existing conditions.
Group health insurance includes many health benefits, including dental exams, vision care, and maternity costs. These health benefits are crucial to maintain a better working environment and to protect your employees from any mishap during working hours. Keep reading to know the benefits of having health insurance.
Avoid Large medical bills.
Medical costs are going up. They are expected to rise at a rate of more than 5 percent per year through at least 2018, according to the 2013 Kaiser Family Foundation report.
The average cost for Medicare Part A hospital stays was $8,727 in 2015 and is projected to rise by 4 percent per year over the next decade (to $16,000). That’s on top of what you already pay for your prescription drugs—and it doesn’t include the cost of out-of-pocket expenses like copays or deductibles that you may have to pay yourself if you don’t have insurance coverage through your employer or your spouse’s job.
Protection for Employees and Families
When you have a group medical insurance plan, your company can protect its employees and their families from the financial risks of illness. If an employee becomes ill or injured, the insurance policy will cover the cost of their treatment.
This is especially beneficial for companies that provide benefits through payroll taxes because employees do not need to worry about how much money they may need for treatment costs. The cost of this coverage will also be offset by tax deductions on behalf of each employee who receives these benefits; however, this deduction cannot exceed $1 million per year (or $2 million if married).
Health insurance provides protection.
Group Health insurance is a type of insurance that protects against the risk of significant health problems. Health insurance can be purchased through a group health plan, an individual policy, or both.
The benefits of group medical insurance include the following:
- Protection from the risk of major health problems such as cancer, heart attacks, and other serious illnesses;
- Peace of mind knowing that the family of employees will be covered if the unexpected happens; Savings on out-of-pocket costs for doctor visits and prescriptions; Reduction in financial stress due to having coverage available at no cost to you (if you qualify);
Tax Benefits
The first benefit of group medical insurance is that it allows you to save on taxes. If you are taxed at the individual level, your contribution towards your coverage will be taxable income. This can add up to thousands of dollars in additional taxes if you have high medical bills or other expensive-to-treat conditions.
Group plans also provide tax breaks for employees who participate in themselves and their families—typically up to 60% of the total premium cost for each employee and spouse/dependents (up from 50% under prior law). For example, if an employer contributes $500 per month toward a family plan with two children covered, they would receive $1,000 back on their tax return as a refundable credit against their payroll tax liability (assuming they’re not eligible for other incentives).
Conclusion
Group health insurance can help you avoid large medical bills, which is a good thing. As an employer, your employees must be protected from severe illness or injury and need emergency care.
