Providing effective benefits packages is a complex challenge for businesses of all sizes. Small Group Insurance and Large Group Insurance are two distinct options with unique sets of pros and cons, designed to address the health coverage needs of organizations ranging from 2-50 employees up to 50 or more. Let’s explore these different approaches side by side so you can make an informed decision about which plan will work best for your organization!
When choosing an employer health insurance plan for your small business, it is essential to understand the different ways premiums are calculated. Small group plans typically use a community rating model, which ensures all group members pay the same amount regardless of their individual health factors. While this results in more expensive premiums for younger and healthier individuals, it also promises stable costs for the business. On the other hand, large groups generally benefit from experience rating, where their past claims history is taken into account to determine their premium rates. This can often result in lower premiums for healthier groups but makes it difficult to predict costs from year to year.
The two plans come with distinct options available. Small Group plans to provide more manageable selection options but may not offer the full range of benefits. Alternatively, larger companies can take advantage of Large Group Insurance plans with greater flexibility and customization. This allows businesses to create a plan tailored specifically to their particular workforce’s needs while still providing comprehensive coverage. Whichever plan option best suits their needs and budget, employers need to be aware of their available choices to make an informed decision.
The administrative burden is an important consideration when it comes to employee benefits programs, especially for small businesses. Small group insurance plans often come with streamlined administrative processes, helping to reduce the amount of time required to manage a plan and its associated costs. Large group plans commonly have more complex administrative requirements, necessitating specialized expertise or a dedicated HR department to ensure everything runs smoothly. While small businesses may require slightly more effort upfront as they transition from one type of plan to another, the long-term benefits of comprehensive management can mean considerable savings in time and money.
Employee Retention Benefits (ERB) understands companies have unique needs when it comes to their insurance coverage. That’s why we provide a choice of both small group and large group employee benefits insurance options – so you can find the ideal package for your company. Our knowledgeable and experienced team is on hand to offer professional advice, and our friendly customer service ensures you receive an excellent standard of care from beginning to end. Contact us today for more information about ERB’s range of employee benefits insurance solutions.