One of the biggest questions prospective employees have usually pertains to what kind of employee benefits they’ll receive in their new job. Employers who have over 50 employees are required to provide health insurance plans and usually deal with group health plans or group health insurance. If you’re a business or single employer looking into the best group health insurance plans, you may have a significant number of questions on how to get a good insurance rate for your employees. If you’re on the smaller end of the business spectrum without much human resource administration, it may be confusing to navigate terms and rates with insurance companies. So what do you need to know?
What Are Group Health Plans?
Group health plans basically ensure that employees who work at a company that offer them have health insurance because they work for that company. The company buys the coverage and then distributes it to their employees. In many cases, this health plan may extend to their family –spouses and children.
Why Use A Group Health Plan?
A group health plan can be advantageous for employees because they don’t have to front the cost of their health care premium. Employers generally contribute about a half or more of the premium every month and some employers have plans that let their employees contribute to the plan and not be taxed for it. Ultimately, the tax breaks benefit both the employer and the employee.
By Law, What Are Employees Entitled To?
According to FMLA (The Family and Medical Leave Act), employees must be able to access up to 12 weeks of leave that are unpaid, but that allow them to come back to their job. An employee can use FMLA if they have a child, need to take time to provide care for their family (children, spouse, parents) or if they have a serious medical issue of their own.
Workers compensation, disability insurance, and unemployment insurance must also be available for employees, although terms and agreements may differ from state to state. An employer must also chip in for social security taxes for each employee.
Health, vision, and dental plans, 401K plans, and paid leave are at the discretion of the employer. However, having good benefits can attract a higher rate of employees and potentially better employees, who expect certain kinds of advantages from their employers.
Small businesses are also governed by different rules than large corporations, as might be expected. However, up to 75% of small businesses will offer their workers paid vacation time and almost 60% of small businesses will give their full-time employees paid sick days. Again: these policies often prove beneficial in attracting the employees they desire.
How Can I Find Good Health Insurance Rates?
If you don’t have employee benefits software or a benefits administrations system, navigating the waters of insurance plans can be a bit daunting. Luckily, with the Affordable Care Act, there are plenty of online resources for small businesses and larger businesses alike to find information. Discussing policy plans with numerous insurance providers may also be a good way to go, as you’ll be able to compare and contrast rates, packages, and customer service.