These days, American employees of many industries have huge expectations about their company’s health care package that employers are often faced with the challenge of offering excellent Virginia group health insurance programs without breaking their bank. There’s a formula, however, that calculates the amount of premium employers can pay for their employees’ health insurance package that should turn out favorable (and fair) to both parties. Here are some pointers on employer insurance plans that you need to know.
How It Works
Basically, a group health insurance plan can be offered by any company to their employees as part of their benefits. While this isn’t exactly mandatory for all businesses, many employers, particularly in industries where a high level of risk can be expected, view this benefit as an excellent opportunity to reel in human resources and outmatch the competition.
How Premium is Determined
The premium that businesses will have to pay varies depending on factors that relates to the employees’ health. For many states, this involves what is known as medical underwriting, where employees are asked about their medical information, as well as of their family members where coverage may be extended. This information pool will then be used to determine the extent of health risks for the employees as a group.
Factors Affecting Premium
Essentially, age is one of the most common driving factors that can influence a company’s premium. Firms who employ a lot of older people tend to have a higher premium than those with younger workforce, as this age group is inclined to have more health issues than younger ones. Moreover, certain types of workforce, such as teachers and nurses, tend to file more insurance claims than others, thus raising insurance premiums for this group.
An insurance article on CNN Money explains it this way:
Larger companies tend to offer lower employee premiums simply because the risk is spread out. The smaller the firm, the more age and gender play a role in what you’ll pay.
When considering efficient Virginia or Maryland small group health insurance as an option for your employees, determine just how practical it is for your business first. You should consider consulting with an insurance provider, such as Financial Brokerage Services, Inc. Financial advisors on insurance premiums should be able to offer you some insights as to whether or not this is the right step for your SMB enterprise.
(Article Excerpt and Image from How does group health insurance work?, CNN Money, October 26, 2009)