Group benefit health insurance options allow businesses to provide affordable, effective healthcare options to their employees. Many company plans offer a range of services and allow employees to choose their deductible based on the premium they’re willing to pay. If you’re in this position, here’s what you need to know before you choose.

What is group benefit insurance?

Group health insurance coverage is a policy purchased by a company/employer and made available to eligible employees of the company – and sometimes, family members as well. According to the National Association of Health Underwriters, the majority of Americans have group health insurance coverage, either through their own employment or that of a family member.

Why do companies choose group benefit insurance?

With a group benefits plan, employees pay into a common pool together. When someone gets sick, the cost is absorbed by that pool. That keeps risk down for the insurance provider, which keeps premiums down for the company – and for you. High-quality group benefit plans can help employees:

1. entice and maintain skilled employees,
2. keep costs down,
3. ensure that all employees are treated equitably and fairly with similar or identical contract terms,
4. keep morale high through a corporate culture of financial security and social stability, and
5. apply tax deductions to premiums to further mitigate insurance costs for both employer and employee.

The perks offered by group benefit plans can keep premiums and deductibles down for you. But a lower premium doesn’t always equal more affordable coverage – especially when it comes with a higher deductible.  

Why do deductibles matter?

Most of group insurance plans are based on a premium payment and a deductible – an out-of-pocket amount the employee and/or employer must cover before insurance coverage kicks in. That number can be pivotal in protecting your health and financial stability.

Not all plans are created equal. Insurance is regulated state by state, so the legal details of a policy will be different depending on your place of residence. You may have the decision to “opt in” at several different deductible levels, each with their own stipulations. A higher-deductible plan that looks tempting at first may also come with cuts to other benefits, so it’s important to pay attention when choosing your deductible/premium balance.

Is it really cost effective -- or just cheap?

Group benefit insurance can be quite comprehensive, including options for life and disability insurance, dental and vision coverage, even flex spending and sick leave options. Some higher deductible/lower premium plans will be “stripped down,” without the extra amenities that can make the difference between insurance that makes medical care affordable and insurance that only gives you a false sense of security. Take time to read through and fully understand all your options, so you know you’ve chosen a plan that protects your family in times of emergency.