Interview With Todd Taylor On Strategizing Large Group Health Insurance

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Insuranceopedia Staff
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Key Takeaways

  • To qualify for group health insurance, many states require 51 employees to sign up


What is large group health insurance, and how do you balance costs with comprehensive coverage?

Today we’ll get into that and more with an interview by Todd Taylor, a health insurance expert.

Let’s get started.

What is Large Group Health Insurance?

Large group health insurance is a group coverage plan for many members at once. Consider that many employees who work for companies are signed up for such a plan. What’s great about large group health insurance is how many people signing up at once can result in a better rate for everyone involved.

In the 1940s, large-group health plans became more common as corporations started to offer insurance for their employees. The plans are often always provided by the employer’s company and the coverage can extend to family members as well.

To qualify for a large group health insurance coverage, most states require 51 or more employees to sign up at once. States such as California, New York, Vermont, and California, require 101 employees or more for large group health insurance. 

For companies with 50 or fewer employees, “small group” health insurance is still available, although the participants will likely not be given a substantial discount as large group health insurance can offer.

Employees will need to work at least 30 hours or more to qualify for large-group health insurance, otherwise, they will need to work more to reach the 30-hour threshold. 

Small and large group insurance plans often cover ambulances, lab tests, prescriptions, maternity care, hospitalization, and post-hospitalization care. Every plan is different, so it’s always best to check with your employee.

How Much Does Large Group Health Insurance Cost?

The cost of large-group health insurance depends on many factors, from age, occupation, employer size, and policy tenure. If you work in a business-like construction, the premiums are going to be far more than the ones offered for office workers.

If you are older, the premium is also higher, as age accounts for more illness and more cost to the insurance companies. The more people on your large group plan also means less cost for everyone else.

What are the Downsides of Large Group Health Insurance

The downside of large-group health insurance is the lack of flexibility. You may be someone who has a unique illness that requires a lot of attention and care, and some employers may fail to have a suitable insurance plan for people who are suffering from illnesses.

Without the choice of network to choose from, the deductible, and the premium, large group health insurance is not for everyone. It’s always best to check with your employer for all the details to avoid landing on a plan that doesn’t suit your health.

Alternatives to Large Group Health Insurance

If for whatever reason your employer’s large group health insurance does not suit you, there are plenty of alternatives. Not only that, it may be better to have your own plan if you plan on leaving the company relatively soon.

You can consider using an integrated HRA, health insurance stipend, or standalone HRA to make up for the large group plan that you may have received otherwise. With a standalone HRA, you would be reimbursed tax-free for any health insurance premiums.

Some companies shy away from large group health insurance and instead utilize standalone HRAs, allowing for payouts regardless of what insurance plan you are on.  This also shifts more power to the employee and allows for much more flexibility long term. 

Standalone HRAs are a great alternative to any company plan and is gaining popularity throughout the country as time goes on. Integrated HRAs are also a form of tax free reimbursement, although this means that employees cannot be on their own plan, and thus lose out on the wanted flexibility of standalone HRAs. 


In conclusion, our interview with Todd Taylor has shed light on the intricacies of large group health insurance and the importance of balancing costs with comprehensive coverage. Large group health insurance is a valuable option for many employees, as it offers the advantage of group rates, making healthcare coverage more affordable. These plans often extend coverage to family members as well, ensuring the well-being of not just the employees but their loved ones too.

However, the cost of large group health insurance can vary significantly based on several factors, such as age, occupation, and employer size. While it can be cost-effective for many, it may not be the best fit for individuals with unique healthcare needs, as these plans lack the flexibility to cater to specific health conditions.

For those seeking alternatives or desiring more control over their healthcare coverage, there are options like integrated HRAs, health insurance stipends, and standalone HRAs. These alternatives provide a degree of flexibility and choice, allowing individuals to select plans that better suit their requirements. It’s worth considering these alternatives, especially if you anticipate leaving your current employer in the near future.

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