Group Health Insurance
Group health insurance is the most impactful benefit an employer can offer. Employer premium contributions are fully tax-deductible, and under the ACA, employers with 50 or more full-time equivalent employees are required to offer health coverage meeting minimum value and affordability standards or …
Key Coverages for Group Health Businesses
- HMO plans — network-based, lower out-of-pocket costs
- PPO plans — flexible provider choice, no referral required
- HDHP plans with HSA eligibility for tax-advantaged savings
- Prescription drug coverage (included in all ACA-compliant plans)
- Preventive care at 100% (ACA requirement)
- Mental health and substance use disorder parity
Frequently Asked Questions
Are employers with fewer than 50 employees required to offer health insurance?
No. The ACA employer mandate only applies to employers with 50 or more FTEs. Small employers are not required to offer coverage, but doing so provides competitive advantages in recruiting and the employer's premium contributions are tax-deductible.
What is a Section 125 cafeteria plan?
A Section 125 plan allows employees to pay their health insurance premium share pre-tax, reducing taxable income and payroll taxes for both employee and employer. It requires a written plan document and typically saves both parties money.