Why do employers get group health insurance?
Group health insurance is appealing to employers who want to provide their workers with a means of accessing affordable healthcare. It’s easier to issue this health insurance at a lower premium cost because this accounts for the collective employee health. There’s lower risk for the insurer here.
How do employees get group health insurance?
Group health plans must be offered by the employer, but the employee isn’t obligated to join the group health plan. On the other hand, the employer may be required to have a certain percentage of employees on the health plan in order to keep it.
Another advantage is that these premiums are lower than most private health insurance policies, and employees pay them with pre-tax income. For employers, the premiums are tax-deductible.
What is Prepaid Health Care in Hawaii?
Prepaid Health Care (PHC) sets provisions for workers who need health insurance and work 20 hours or more per week. This originates from the Prepaid Health Care Act of 1974. Private employers have to offer this, or else they will be subject to fines.
Eligible employees will not have to pay any more than 1.5% of their monthly income in premiums.
This group health insurance is not available for employees who work for government-affiliated businesses, agricultural seasonal workers, people working for their children or spouse, or those under 21 working for their parents.