Group Health

Group health insurance is insurance provided by employers who have at least more than one full-time employee. It benefits everyone involved, and can be implemented by small and large businesses alike.

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.

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Small group health plans

Small group health plans apply to employers with 50 or fewer employees. As a result of the plan covering a smaller number of staff, the premiums tend to be higher compared to large group health plans.

Small group health plans offer plans such as Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), and Point-of-Service (POS).

HMOs have the smallest network, require choosing a primary care physician, getting referrals to see a specialist, and they have the smallest premiums.

PPOs allow out-of-network treatment at higher costs, without requiring policyholders to choose a primary care physician or getting referrals, but the premiums are higher.

POS plans are the middle ground. They allow out-of-network treatment, but still require choosing a primary care physician and getting that physician’s referrals. The premiums are more expensive than HMOs, but still less than PPOs.

Large group health plans

Large group health plans are purchased by employers who have a minimum of 51 employees. In fact, employers with more than 50 employees are required to offer group health insurance. These plans tend to have the cheapest premiums, making them an employee’s most appealing choice out of other health insurance alternatives.

For any questions about group health

Proinsurance Hawaii is your source for group health insurance information. We are proud of where we come from and the customers who let us offer our helping hand. To get more information, call us today at 808-735-0106.