5 Things To Know About The Workings Of A Employer-Sponsored Health Insurance Plan


Is There A Specific Number Of People Needed For Group Health Insurance Plans?

When you purchase group health insurance, you need a group. One person is not going to cut it for group health insurance. Small businesses can have two people and qualify for group health insurance. A minimum of 70% of people in the company must get the group health insurance, not including the owners or their respective partners. Make sure to do some research and math here to find the right plan.

Why Is It More Affordable To Get Group Health Insurance?


Since more people participate in a group health insurance plan, it’s more affordable for everybody. Since the risk pool is bigger, the rates are lower. As such, the premiums are lower than if an employee looks at the individual coverage plans.

  • Insurance companies see a handful of people as a considerable risk while many people reduce their risk
  • Increased risk means more money to insure the group, but reduced risk means it takes less money to insure them.

A group health insurance plan ensures employees can get the insurance they need when all other insurance plans are out of price range. When there is a large group of people in the plan, the cost of that plan will drop. This keeps the plan affordable for both the employer and the employees.