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A Beginner’s Guide to Group Health Insurance

In 2019, there were almost 29 million uninsured Americans. Many companies say they can’t afford health insurance for their employees. If you are looking for affordable options for health insurance for you and your employees, group health insurance is a great option!

Keep reading to learn more about what group health insurance is, the benefits of group health insurance, and more!

What Is Group Health Insurance?

Group health insurance offers insurance plans for larger groups of people. This can be any type of group but is most often consisting of employees in a company. Rather than having individual plans, group health insurance plans offer full-time employees benefits.

There are many benefits that come from using this type of insurance for employees. These types of plans are common in the United States and Canada

How Does It Work?

To start a group insurance plan, your company or organization will choose a plan that works for them. Employees and group members are not required to join, but they have the option to accept or decline coverage.

In many cases, you can also choose a plan with coverage for your dependents! While it may seem too expensive to get a group health insurance plan, it actually often costs less. Because there are so many people who use the plan, it makes it a more affordable plan.

Benefits of Group Health Insurance

There are many reasons why you should consider getting or joining a group health insurance plan. Here are the top group health insurance benefits.

It Is Easy to Be Accepted

As mentioned before, there are millions of people in the United States that have no health insurance coverage. Many times, people with chronic illnesses or medical issues are not able to get coverage. Their medical issues make them a risk for insurance companies to accept and to cover.

However, it is easy to get accepted to a group health insurance plan. The plan will apply to anyone in the group and it doesn’t even require a physical exam or a medical history. So, this is a great option for people who have pre-existing conditions, who are at higher risk, and for those who have struggled to get insurance coverage.

Lower Costs

If you are considering getting a group health insurance plan for your employees, one of the main benefits is that the cost of insurance is less than your typical insurance plans. Because there are so many people in a group, the risk is spread among all group members. This makes it less expensive.

Another reason why it is less expensive to use a group health insurance plan is that the cost is spread between the whole group. Group members will all contribute to the total premium cost.

Because group health insurance is less expensive than individual insurance plans, it is a great and affordable option for you and your employees!

Tax Benefits

Not only do group health insurance plans cost less upfront, but they also are often tax deductible. When you are filing your taxes, you can save even more money.

Before you file your taxes, research the available tax deductions and options that will allow you to save money on your taxes.

Happier Employees

Finally, one of the biggest benefits of having a good health insurance policy for your employees is that they will be happier and more productive. In fact, a study by Oxford showed that workers that are happy are 13% more productive.

If you provide good benefits for your employees, you will see a return on productivity levels in your workplace.

Types of Health Insurance for Employees

There are many types of health insurance that you can consider for your employees. Depending on the type of insurance and the plan you choose, the quality and price of the plan will differ.

Here are the most common types of health insurance for employees.


HMO plans are also known as health maintenance organizations. In this type of plan, your employees choose a primary care provider from in-network providers. With this type of plan, the costs of your plan are lower and more predictable.

Copays and deductibles in HMO insurance plans are often lower. This is a great option for health insurance if you are looking to cut costs!


PPO plans are also known as preferred provider organizations. In this type of plan, you don’t need to choose a primary care provider. You can choose the doctors that you want to see.

If you choose a doctor within the network, you get a higher level of coverage, but you can still choose doctors out of your network.


An EPO plan is also known as an exclusive provider organization. It is a mixture of both HMO and PPO plans.

Just like with a PPO plan, you don’t need to choose a primary care provider. However, you might not be covered if you choose a doctor outside of the network.

Find a Reliable Insurance Provider Today!

Group health insurance is a great option for any size company and offers many benefits to business leaders and employees. Finding a reliable insurance provider is necessary if you want to get the best plan possible for your company.

If you are ready to get a group insurance policy today, Harrah & Associates, Inc. can help! Our company has been in business since 1955 and we tailor insurance programs to meet the needs and budgets of our clients. Contact our team today to learn more about our policies if you are looking for insurance in New Jersey!