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4 Common Myths Business Owners Believe About Group Health Insurance


Shining a light on group health insurance myths


There are all kinds of claims about small business health insurance, and many of them can leave business owners and their employees misinformed about group insurance. While some of these stipulations are true, there are a few that are myths.


To help you find clarity as you make decisions for your business, we're shining a light on the 4 most common group health insurance myths and why they're misleading.


Myth #1: Insurance Companies are Only After the Money


This is the most popular myth about all insurance companies, including those offering health insurance for small businesses. This couldn't be more false. There is no shortage of insurance companies out there offering benefits that were developed to protect your assets and your small business. As an entrepreneur, you should think about your deductible and monthly premiums carefully. Whatever you choose, know that your insurance carrier has the protection of your business and employees as its top priority.


Myth #2: Employers are Required to Pay AT LEAST 70% of Health Insurance Premiums


Although the Affordable Care Act does not require employers to contribute a set amount to employee-only coverage, some insurance carriers and states require employers to pay at least 50% of the premium. Some employers can choose to cover more if they want to keep a certain employee or group of employees that are good for business.


Myth #3: Employers are Required to Pay for Single and Family Coverage Equally


Although many employers provide the same level of coverage for single and family employees, as a business owner, you have the option to contribute more to family coverage. As an employer, you are able to contribute as much as you would like to an employee’s health coverage.


Myth #4: Employers Can Extend Health Insurance to Certain Employees


This myth is often not a myth at all and holds a lot of truth. There are only a few things that would change this: If you offer coverage to one full-time employee, then all full-time employees must be offered the same coverage. Even if you only offer coverage to part-time workers, then all part-time employees must have the choice to participate in group health insurance.


Key Takeaways


As a business owner, it's vital to understand the different insurance myths and the rights employees have in regard to their insurance coverage. 19:21 is here to help people like you understand common misconceptions associated with group coverage and help make sure your employees are covered.



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