Health insurance and medical costs are so expensive that several employers use benefit pages as incentives to entice and retain workers. Businesses with 50 or more employees must legally provide health coverage to 95 percent of their full-time workers, or they will face a penalty.
The ACA also requires employers to extend coverage to employees’ dependents, like biological and adopted children younger than 26 years of age. However, companies do not have to extend coverage to their workers’ spouses.
As such, most people have employer-based health insurance, which is group coverage. Group coverage members receive cheaper coverage because the risk is spread through the entire company.
For example, younger employees are less likely to need to see a doctor regularly. Older workers or those with certain medical conditions can cost the insurance provider more because they need more care. These populations balance out the expense the insurance provider expects, so it charges the group less.
Additionally, businesses pay a portion of each worker’s premiums. Insurers require employers to cover at least 50 percent of each workers’ monthly premium. Yet, companies pay 82 percent of premium costs on average.
Your premium for your group insurance policy will depend greatly on your employer, the available options, and if your family is on the policy.
However, you may not be able to get employer-based health care if:
· You work for a small business.
· You only work part-time.
· You do not have an employer.
· You are self-employed.
If you sound like any of the above, you might still qualify for a government discount on insurance premiums.