Small Business Health Insurance in Kentucky (How Group Coverage Can Help You Save)
Published on June 11, 2018
Updated August 6, 2019
Group health insurance is a great way to cover employees and employers, even if you are a “small business” of only two people. eHealth has plenty of options for small business health insurance in Kentucky, and we help to make the process easy on you.
If you’re not sold on getting group coverage, take some time to look into the benefits of small business health insurance in Kentucky for both employees and employers.
Small business health insurance in Kentucky could be saving you money (don’t miss out!)
In a recent eHealth study, we found that individual health insurance plan premiums cost 7 percent more than group health insurance premiums on average, while individual plan deductibles cost 31 percent more than group plan deductibles on average—and many people don’t even know about it.
But perhaps customers are figuring it out—in 2018, eHealth’s data showed that even small groups (who perhaps wouldn’t have thought to offer group coverage before) were purchasing group health insurance plans as opposed to getting individual health insurance coverage.
If you want your employees to benefits from low premiums, then checking out small group plans might be your best bet.
Why else should you get small business health insurance in Kentucky?
Besides the lower premium costs there are plenty of benefits to group health insurance that you may not have known about before. Let us enlighten you:
- Tax benefits for employees—this cost saving aspect of group coverage doesn’t involve employers contributing any money to help employees gain more affordable health insurance. By being part of a group plan, employees pay their portion of insurance with pre-tax dollars, which can add up to significant savings.
- Lower premiums—there are several reasons why premiums are lower on group plans: employer contributions (usually around 50 percent) is one, but another reason why group coverage is often more affordable is that insurance companies usually offer lower prices for larger pools of enrollees—this is called a risk pool advantage.
- Tax benefits for employers—employees are not the only ones who are benefiting from small group health insurance. Small business employers also have the opportunity to qualify for the small business premium tax credit, which could help pay for contributions to employee premiums.
Popular group plans (choose the right small business health insurance in Kentucky)
Now that you know all the possible savings available to those who enroll in a group plan, your next question is probably, “What plan type is best for my small group?”
Just like with individual plans, group health insurance has some popular plan types that many groups choose. Some of these include:
- Point of Service (POS) plans: A recent eHealth study found that nearly half (47 percent) of our customers enrolling in small group health insurance chose a POS plan. This plan type is sort of a mix between HMO and PPO plans. Like an HMO, you probably need to choose a primary care doctor, but like a PPO you will have a broad range of health care providers to choose from, and possibly more flexibility with getting coverage for out-of-network care.
- Preferred Provider Organization (PPO) plans: With a PPO plan you’re encouraged to user in-network, or “preferred,” doctors but there is some flexibility with getting coverage for care outside of the preferred provider organization.
- Health Maintenance Organization (HMO) plans: In a health maintenance organization, you’re usually required to choose a primary care doctor (PCP), who you go to for all referrals to a specialist. Although HMO plans usually come at lower costs than other options, enrollees also have little flexibility with going outside of the HMO’s network.
- Exclusive Provider Organization (EPO) plans: EPO plans have no benefits outside of their network, so exclusive doctors and facilities you go to are the only options if you want coverage. Oftentimes these plans come at a lower negotiated rate due to the restrictive nature of the exclusive network. You also will likely not need a PCP to get referrals for specialists.
How to get small business health insurance in Kentucky
If you’ve decided that small group health insurance coverage is what you want, eHealth has excellent resources to help you shop and enroll in a plan in your area.
Visit our Kentucky small business health insurance page, and find plans in your area. We provide free quotes, assistance if necessary, and a streamlined application and enrollment process.
Group and employee definitions vary by insurance company and state, so be sure to check with a licensed insurance agent to find out the details for your specific situation.
This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.