What It Is
Employer-sponsored health insurance is health insurance that an employer purchases and gives to an employee as part of a benefits package. When compared to an individually purchased plan, it usually provides broader coverage at a better price.
Why It Matters
Employees with health insurance are more likely to be productive, as they are generally healthier and have fewer absences. This is because insured employees are more likely to receive needed and appropriate health care.[1]
Getting Started
First, find the right health insurance plan for your business. You can compare health insurance plans on eHealthInsurance.com.
Please note that in order to offer group coverage, most states require that an organization have at least two eligible employees. The following states require that an organization have just one eligible employee.
- Colorado
- Connecticut
- Delaware
- Florida
- Massachusetts
- Mississippi
- North Carolina
- New Hampshire
- Rhode Island
- Vermont
- Washington
Going Further
Consider contributing to dependent coverage. A dependent is a child or qualifying relative of an employee. Employers can choose how much of both employee and dependent coverage to which to contribute (for example, 0%, 20%, 40%, or 100%). As you negotiate employee salaries,
Advanced Steps
Consider offering dental insurance and vision insurance in addition to standard coverage. Employees often have to pay for these perks, so including them in your benefits package may help make you more attractive to potential hires. Click the following links to help you find the right dental and/or vision coverage for your employees.
Resources
Links:
- Mercer, a global HR firm, conducts an annual survey of employer-sponsored health plans.
- The US Department of Health and Human Services provides information on trends in cost and access regarding employer-sponsored health insurance.
- The US Department of Labor provides information on health plans and benefits.
Glossary of Related Terms
Dependent: Health insurance plans often use the IRS definition of “dependent”, which includes “qualifying children” and “qualifying relatives.” For more information on who qualifies, see http://www.irs.gov/.
Depending on the health plan, a child may no longer be classified as a dependent when he/she:
- Loses status as a full-time student (e.g., graduated from high school or college, dropped out of school, cut back on college course load)
- Reaches the plan’s maximum dependent age limit
- Moves outside the United States
- Becomes eligible for group health insurance through his/her employer or the military
Employee-sponsored health care: This is health care that a business purchases and gives to an employee as part of a benefits package. For more information on this topic, visit the Agency for Health Care Research and Quality webpage.
Health care: Health care includes services that prevent, treat, and manage illness, as well as preserve mental and physical well-being. Employee health care may include health screenings, flu shots, wellness education, and health insurance.
[1] Information retrieved from “Transforming Insurance Coverage in Quality Health Care” by J. Eisenberg and E.J. Power, http://jama.ama-assn.org/content/284/16/2100.abstract
Comments