What Does Business Health Insurance Mean?
Business health insurance, or more commonly known as group health insurance, is a health insurance policy purchased by employers for eligible employees and their dependents. An employee benefit many larger companies offer to qualified employees, it covers a portion of qualifying medical expenses. The amount varies from company to company, with state and federal laws, such as the Affordable Care Act, affecting the extent and types of coverage group plans must offer.
Insuranceopedia Explains Business Health Insurance
Business health insurance requires employers to pay part of the cost of the health coverage premium of their employees. In most cases, employers pay at least half of the monthly premium; thus it costs less for the employees compared to those who obtain individual health insurance plans. Furthermore, since the risk is divided by each group member, this adds up to a lowered premium. Another benefit of the business health insurance is that the contributions are not taxable for the contributing member. Therefore, many companies offer it as part of an employee benefits package to attract top talent and retain them in their firm.