Many benefits come along with choosing to take advantage of group health insurance plans. For instance, these plans typically come with a lower monthly premium than individual health insurance plans. This is made possible by the fact that insurance companies can spread out the risk of insuring any one individual over the entire group and therefore offer lower premiums for all group members.
Group health insurance plans are most commonly used by larger businesses as a way of providing their employees with employer-sponsored insurance benefits. Unfortunately, this fact has led many smaller business owners and sole proprietors to believe that they do not fit the criteria necessary to take advantage of these plans. However, the truth is, even the smallest of businesses can benefit from the use of group health insurance plans.
No Group Is Too Small
One of the primary reasons that small business owners assume they will not qualify for this type of insurance coverage is simply that they believe their base group of employees is too small. While it is true that the larger your group is, the more you can expect to save per person on your monthly premiums, there is no such thing as a group that is too small to qualify for the benefits these insurance plans have to offer. This is because many major insurance carriers only require that a group contains more than one person.
Thinking Outside the Box to Grow or Form Your Group
While employer-sponsored health insurance may be the most common form of group health insurance, working for the same employer is not a requirement set by the insurance company. Instead, most insurance companies simply require that you and your fellow group members have a common factor that is used to establish you as a group.
This common factor can affect the industry that you work in, the geographical area in which you are located, or your position within your company. This means that a group of sole proprietors that all live in the same city can use this common bond to come together and form a group to purchase a group health insurance plan. Not only does this flexibility allow more people to form qualifying groups, but it can also help you to grow the size of your group if you only have a few employees. This ability to grow your group without necessarily growing your business can help you and all of your other group members enjoy the same low rates that larger employers can obtain.
For more information, contact group health insurance providers.