Advantage Benefit Concepts, A World Company

Many people obtain health coverage through a group health insurance plan that’s sponsored by their employer. Such plans often account for a significant portion of employees’ overall compensation, and the plans can greatly affect how highly employees value their jobs. For businesses that want to attract the best talent possible and keep employees loyal, offering group health coverage is often essential. Group health insurance is a health insurance policy that provides coverage for a specific group of people, such as a business’ employees. Plan participants generally all receive the same coverages, and they normally split their plan’s premiums equally. Thus, low-risk and high-risk individuals both usually pay the same amount, and they receive the same health insurance coverage. Employees sometimes pay different premiums based on whether they want coverage for themselves, themselves and their spouse, themselves and their children, or their whole family. Employees’ medical conditions, however, don’t usually affect how much they pay for group health coverage.

Group health plans may be offered by businesses, governments, nonprofits, or other organizations. The business (or organization) that sponsors a plan typically pays a significant portion of the plan’s premiums, while employees pay the remaining premiums that aren’t covered by their employer. In this way, the cost of a group health plan is usually shared by both businesses and employees. The money that a business spends on group health premiums is hardly wasted. Employees generally understand that health insurance coverage is expensive, and they’re normally very grateful for the premium payments made by their employers.

Most group health plans treat dental and vision coverage separately from group health coverage. Dental and vision coverage may be offered as an add-on insurance option, but the plans themselves typically remain distinct from health plans. Dental and vision plans normally have their own networks of providers, premiums, and coverages.