What benefits are included in a small group health insurance plan? | hioscar Blog | Oscar
What benefits are included in a small group health insurance plan?
More and more small businesses are signing up for small group insurance for the flexibility and savings.
Employee Health BenefitsTips for Small Businesses
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Purchasing group health insurance for your small business is a great way to cover multiple employees. If your business has fewer than 50 full-time employees, you aren’t legally required to provide health insurance. However, there are some nifty benefits to getting small group insurance:
Current employees can get covered while new hires can be enrolled along the way.
Your employees may be able to access a larger network of doctors on a group plan than they would on an individual plan.
Your schedule of benefits (opens in new tab) is a document that will give you the rundown on what’s covered by your insurance plan and which out-of-pocket expenses you’ll be responsible for, so you should definitely read it carefully and ask questions when deciding on a new plan. Things like preventative check-ups (opens in new tab), generic prescription drugs and pediatric dental and vision may be included for free, while ancillary services like adult dental and vision may be available at an additional cost.
One plan doesn’t have to fit all of your employees
You’ve got a staff made up of great folks, but they might be of different age groups with varying health needs. The best way to guarantee that you are offering plans that work for all your employees is to provide a range of plan options. Check with your broker or insurance carrier to find out which plan options you can make available for your employees.
Some plans allow employees to mix plan metal tiers or networks, allowing for even more options. For example, with Oscar for Business in New York and New Jersey, you can offer up to three plans for each employee class (opens in new tab).
HRAs, FSAs & HSAs
Another helpful option with group insurance is setting up a savings account for health care expenses using pre-taxed income to pay for medical costs. There are 3 major account types for qualified medical expenses (opens in new tab):
HRA (Health reimbursement arrangement): The employer sets aside a certain amount of pre-tax money each year for an employee to use on medical expenses like deductibles or coinsurance that aren’t covered by a health insurance plan. Only an employer can put money into an HRA.
FSA (Flexible spending account): The employer owns the account, but the employee makes their own pre-tax contributions and decide which qualified medical expenses to pay with it.
HSA (Health savings account): A long-term savings account an individual sets up to pay for healthcare spending - like a retirement account for medical expenses. While employers can offer HSAs, they are also available to people buying their own individual coverage. (Note: At this time, HSAs are not available through Oscar for Business accounts.)
Long story short, there are actually a lot of benefits
Enrolling your business in a small group health insurance plan means benefits for your company as well as your employees. The first step to making it happen is talking to your broker or health insurance advisor to find out the cost of enrolling your eligible employees. You could have more flexibility, possible access to a larger network of doctors, and it may save you money on taxes. Most importantly, you’ll have a healthier, happier team.
*Thinking about signing up for small group health insurance? To learn more, visit Oscar for Business (opens in new tab), email business@hioscar.com or call 1-844-567-2272.*
