Group Health...yes or no?

[Dave020]

Just remember to "Stay Classy, San Diego".

 

[elisag2a]

I do not believe group is on it's way out, or that National healthcare is on it's way in.
Yes, group does not make sense for small healthy groups but so many others have a mixture of those who could get individual policies at a good rate and those who would not.
I think that group will simply evolve with higher deducts and no copays. It's just like every thing else, it will become more expensive with less benefits.

 

[josephadams]

Please Pardon the question from a newbie....

I have been prospecting companies and i don't know if this is true or not. (As a matter of fact...i think it could be a loaded question).

QUESTION:

1) Assuming all things equal and everyone in a Group can get insurance....What are the advantages of getting Group insurance policy vs. taking the same group and giving them individual coverage?

2) I know it helps retain good employees...but ECONOMICALLY is it more expensive for the employer?

3) What kind of Tax breaks can the employer get to justify any additional expense (should there be one).


any constructive input is greatly appreciated...

I think it all depends on the number of employees. It won't be economical for employers if they only have four employees. But if they have 25 employees, they'd be required to offer healthcare options under Health Maintenance Organization Act of 1973.

 

[NewHealthStrategies]

If you're new to this side of the business, stay away from advising employers (ER) to just give cash to employees (EE) in lieu of providing group coverage. You will surely violate one of the three sacred legs of this business, ERISA, HIPAA or the DOI.

ER's can take the tax write off for contributions made for EE group health. Economically it's better than individual (particularly if 1 of the EE's is in bad health and can't qualify for individual MM)

The advantages from an ER's perspective of group over individual is that he's hoping EE's will "Value" the benefit and won't go skipping down the street to his competitor for $0.25 more an hour.... doesn't always work, but there are only 2 reasons to provide employee benefits.... RECRUIT GOOD EMPLOYEES AND RETAIN GOOD EMPLOYEES..... if that isn't a goal of the ER, then you have an uphill battle in the sales cycle.

Good luck.