Is an Employer Health Insurance Plan Actually Worth It?

Is an Employer Health Insurance Plan Actually Worth It?

Every year, the average American spends about $10,000 on health care.

This is a big expense that most people wouldn’t be able to meet out-of-pocket. But thanks to health insurance, you can get health insurance that takes care of most, if not all, of your health care expenses.

There are different types of health insurance, including point-of-service plans, health maintenance organizations, exclusive provider organizations, and employer health insurance plans.

In this article, our focus in on employer-provided insurance. Continue reading to learn more about this plan and how it can benefit you.

What’s an Employer Health Insurance Plan?

An employer’s health insurance plan is a form of health coverage that an organization gives its employees. The sponsoring organization purchases a group health insurance plan from an insurance company, enabling its employees and their qualifying dependents to get coverage.

Are organizations required by law to provide health insurance to their employees?

In a nutshell, no.

Most companies choose to purchase group health insurance and offer it as an employee benefit. However, under the Affordable Care Act, companies with more than 50 employees face paying a fine to the IRS (about $3,000 per employee) if they fail to purchase health insurance for their employees. As a result, it’s quite uncommon to find a company with more than 50 employees that doesn’t offer this benefit.

How Does Employer-Sponsored Health Insurance Benefit You?

As an employee, you might be wondering how an organization’s health insurance plan benefits you. If you’re currently looking for a job, is it important that you make a decision based on whether the employer offers health insurance in its benefits package?

Well, here are some of the top benefits.

You Get Health Insurance without Incurring (Much of) the cost

The obvious benefit of employer-sponsored health insurance is the employees of that specific organization get health coverage without paying a dime (or without spending as much as they would spend on a private/individual health insurance plan).

There are companies that pay 100 percent of the cost of group health insurance, meaning they don’t transfer any cost to their workers. Most companies, though, split the cost with their covered employees.

Still, sharing the cost with your employee is far cheaper than purchasing individual health insurance, which costs about $500 per month.

Your Employers Does the Hard Work of Choosing a Plan

If you’re buying individual health insurance, you have to do the research and find the right plan for you, as well as the right provider. This isn’t easy to do, and in most cases, you’ll hire a broker to help you.

When on an employer’s plan, though, you don’t have to worry about choosing a plan. Your employer will do that.

The Downside of Employer Health Insurance Plans

If you lose your job or quit, you’ll typically lose your coverage. This can leave you exposed to huge healthcare bills should you need to get healthcare when you’re in between jobs.

The good news is you can purchase Medigap insurance to fill in that “gap.” Check out to learn more.

Employer-Sponsored Health Insurance Is Worth It 

If you have the opportunity to be on an employer health insurance plan, take it. Apart from the possibility of losing coverage in the event of job loss, the benefits are irresistible.

All the best and keep reading our blog for more tips and advice.