What is Group Health Insurance? | WPS Explains

The most common way for Americans under age 65 to get health insurance is through a group health insurance plan offered by their employer. Group health insurance helps make it possible for employees to afford coverage for themselves and their families. The employer splits the premium cost with the employee and covers fees to administer the plan. Depending on the size of the employer, different types of plans are available. Small group health insurance is generally available to employers with 2 to 50 employees. Large group health insurance is available to employers with more than 50 employees. In addition to group size, employers generally consider the health care needs of their employees, available networks, and cost when deciding what type of plan to offer. Common options include Preferred Provider Organization, or PPO, plans; Health Maintenance Organization, or HMO, plans; and Point-of-Service, or POS, plans. Some offer high-deductible health plan options that can be paired with a Health Savings Account, or HSA. Companies that self-fund their group health plan may offer Administrative Services Only, or ASO plans, which are typically PPO, HMO, or POS plans that can be customized to meet an employer's needs. There may be a waiting period of a few weeks to a few months after an employee is hired before they can enroll in the employer’s group health insurance plan. Because plans differ, it’s helpful for employers to provide current and prospective employees with details about their plan’s networks, copays, coinsurance, and exclusions. WPS is here to help!

YT19198