As an employer transitioning from a traditional, employer-sponsored group plan to giving your employees additional compensation and sending them to buy their own health insurance, you know that the company will save a lot of money. But what about your employees?
You might be asking, “Will individual health insurance cost my employees more than what they’re paying for the group plan?” The answer is probably not. Here are three reasons why:
1. Individual health insurance is typically less expensive than a comparable group plan. And many even pay less for a plan they prefer over the one they’d previously had. Here are a few stats to show you how your employees may end up in a better spot than where they were with your employer-provided plan:
- 42% of Gravie members are paying less than 10% of their monthly premium—meaning the money from their employer and/or the government is covering 90% or more of the monthly cost. In a group plan, employees on average pay 32% of the monthly cost.
- Compared to their group plan, 50% of Gravie members chose plans with more coverage, 33% chose a similar plan, and 17% chose plans with less coverage—suggesting that your money goes further in the individual market.
(How is this the case? Read why the individual market is less expensive and why we believe it will continue to be.)
2. Tax credits are now available for some of your employees. Some people now qualify for government tax credits based on family size, income, zip code, and whether or not their employer offers a group plan. If you drop your group plan, you may give some employees access to government tax credits to help pay for health insurance. For your tax credit eligible employees this means additional financial help. Gravie’s team of advisors will help your employees determine if they’re eligible, and help them apply if they are.
3. Your employees get access to expert advisors who help them set their budget and understand what they really need in a plan. Unlike traditional group plans that tell your employees what they have to pay, your employees set their own budgets with Gravie. They tell Gravie advisors how much they want to spend, what they need and want in a plan, and advisors help find the right plan for them to maximize their budget.
Still have questions? Contact us here or call 844.540.8701.