Business Health Insurance
What Does Business Health Insurance Mean?
Business health insurance, more commonly known as group health insurance, is a health insurance policy purchased by employers for eligible employees and their dependents. It is an employee benefit that many larger companies offer to qualified employees, covering a portion of qualifying medical expenses. The extent of coverage varies from company to company, and state and federal laws, such as the Affordable Care Act, influence the required extent and types of coverage that group plans must provide.
Insuranceopedia Explains Business Health Insurance
Business health insurance requires employers to cover a portion of the health coverage premiums for their employees. Typically, employers pay at least half of the monthly premium, making it more affordable for employees compared to individual health insurance plans. Additionally, because the risk is spread across all group members, this results in a lower overall premium. Another advantage of business health insurance is that the contributions made by employers are not taxable for the employees. As a result, many companies include it as part of their employee benefits package to attract and retain top talent.
