Are Employers Required by Federal Law to Purchase Group Insurance for Their Employees?
Group insurance is a type of health care coverage plan which includes individual employees or members under a single main policy. Typically, it is the employer who purchases the policy for the employees of his or her company. As a benefit for working in the company, it can also be extended to the family members of the employees. Since group insurance plans have many contributors, it often provides coverage for more services for a lower cost per individual. The majority of Americans are in hold of group health insurance coverage.
Group insurance benefits vary from company to company. Almost all of existing policies will cover emergency and routine medical procedures (i.e. regular checkups and emergency treatment). Most policies also cover extended care. Some provide assistance for optical and dental care. Additionally, while group insurance may be extended for the employee’s spouse or dependents, this is not always the case.
Currently, no federal law states a requirement that employers need to offer insurance for the workers of their company. However, a number of firms with employees who work in San Francisco are required to make a yearly health care expenditure for their employees. But it is a general fact that there exists no general requirement that a company should provide health insurance, life insurance or even dental insurance to its workers. While many employers offer insurance to their workers, it is not required.
However, a few exceptions do exist. There exists a law, The Federal Employee Health Benefit Act, which states that most employees that reside in the U.S. Government must be provided with health insurance. Various states have existing laws that require that health benefits also be provided to government employees, and in Hawaii, it is a requirement that all employees have benefits. Laws will change according to which state you reside in.
Even if it isn’t a requirement, should an employer still provide group health insurance for his or her workers?
The answer is that an employer most probably should. Purchasing group health insurance for your workers will lead to many advantages. For one thing, you, as an employer, will sleep better at night knowing for sure that your staff has access to quality medical care. Aside from that, it can even help boost morale among your workers. Most employees see group health insurance as a big benefit for working in a company. Group health insurance is the most affordable health plan for employees. And, a law exists stating that nobody can be denied from a group health plan. Meaning, even those people who have been denied from an individual health policy will be perfectly eligible for a group health plan.
A huge number of employees see group insurance coverage as a major benefit for faithful company services. All these lead to boosted morale among a company’s workers. Boosted morale will lead to happier employees, leading to a more successful business.
Basically, even if you are not required to provide group health insurance for your workers, you should still consider it. There are many reasons as to why most companies provide this type of insurance, and these reasons should convince you as well.