Tips for Choosing the Right Group Health Insurance

Deciding on a group health insurance plan can feel overwhelming for business owners, but it can be quite simple. To qualify for a group plan, you generally need two W-2 employees. However, to choose the right policies to best fit your business, you will want to look for a few key characteristics. Most employees will agree that health insurance is their most important benefit, so securing the right plan is essential to keep turnover rates low and keep employees healthy and happy.

Employees’ Needs

Prior to purchasing insurance, it is important to find a flexible plan to cover the team’s specific health care needs. One way to do this is by using an anonymous employee survey asking what is most important to them. Consider using questions such as:

  • Would you rather join a group health insurance plan or find coverage on your own?
  • Will a spouse or children be added to your coverage?
  • Do you prefer a PPO or HMO plan?
  • Would you rather have lower monthly premiums and more out-of-pocket or higher monthly premiums and less out-of-pocket?
  • Is a more extensive network important to you even if you have to pay more for coverage?

Keep in mind that you are restricted from asking employees about their personal health information or speaking about their specific health information to a health carrier without their consent. The trick is to find a plan that offers the right coverage at the right price and enough flexibility. What type of plan do your employees want, and what are they willing to pay? Plans can be mixed and matched (HMO, PPO, etc.) with various tier levels. For instance, offering a Kaiser Permanente Gold HMO plan or a UnitedHealthcare Silver PPO plan. This can be complex, so it is very helpful to consult with your health insurance agent to pick a plan that works for your business and get a summary of benefits and coverage for each plan.

The Modern Payroll

Once the number of employees wanting to join a group plan is clear, the insurer will need to following information:

  • Business name, address, and employer identification number
  • Business entity registration with the Secretary of State
  • Business establishment date
  • Payroll records with the quarterly tax and wage details
  • Business’s industry code or classification
  • The employees and dependents enrolling in coverage personal information

Factors used to calculate premiums:

  • Number of employees joining
  • Demographic information
  • Business location


Businesses that have less than 50 employees are not legally obligated to pay a certain percentage of the employee’s health insurance premiums. The options include:

  • Pay 100% of your employees’ premiums
  • Pay a portion
  • Require employees to pay 100% of the cost

You can speak with your agent to help you manage these logistics as well as the types of plans that involve employees sharing the cost. An Augusta Group Health Insurance agent can help you find a plan that fits your employees’ needs, your budget, and your legal compliance.

About Provident Protection Plus

At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.