Group health insurance is a health insurance plan that is offered by a company that has more than one employee. This may be a large corporation employer that has over a thousand employees or a small business employer that has less than 50 employees. Normally a customized health insurance plan can be created by the employer, or the employer can choose a plan that has already been put together by the insurance company. These are some of the advantages group health insurance has to offer both employers and employees.


With group health insurance, both the employer and the employee pay on the cost of the monthly premiums. For instance, an employer may pay 60% of the premium cost, and the employee may pay 40% of the cost. Insurance companies often offer better deals on the cost of health insurance to employers if they have a group plan instead of an individual plan for each employee. The more employees that enroll in the group health insurance plan, the less the costs may be for both the employer and the employee.

Tax Benefits

Both employers and employees may also receive tax benefits due to group health insurance plans. Employers can count their portions of the cost of group health insurance as business expenses when filing taxes. Employees can count their portion of the cost of group health insurance premiums as personal medical expenses as well. This may allow both the employers and the employees a break in how much taxes they are required to pay each year.

Coverage For Family Members

When an employee has only individual health insurance, it may be difficult to find affordable health insurance coverage for their family members. However, group health insurance plans often offer coverage for employee family members as well. Since the premium costs are less with group health insurance, the cost of family member coverage is also more affordable than other private health insurance plans.

Better Work Environment

Having an affordable health insurance plan is a great way to help employees feel more satisfied at their place of employment. Jobs that offer exceptional health care coverage have lower percentages of turnover with employees because workers are happier with the benefits they receive. This makes for a much better work environment for both the employer and the employees.

Some group health insurance companies also offer riders to employees should they want additional coverage that is not included in their health insurance plan. These may include dental coverage, vision coverage, and short-term or long-term disability coverage. Often the premium costs for these riders are also very affordable, which makes them very appealing to employers and employees alike.

Ask an insurance provider like SCI & Associates about group health insurance for your company.