Group Health Insurance

Group health insurance is a health coverage plan offered by an employer to its employees (and often their dependents) as an employee benefit. Group plans spread risk across the entire covered group, typically resulting in lower premiums than individual health insurance policies.

Under the Affordable Care Act (ACA), employers with 50 or more full-time equivalent employees (Applicable Large Employers, or ALEs) must offer minimum essential coverage to full-time employees or face potential penalties.

One of the primary reasons businesses use PEOs is to access better group health insurance options. By pooling employees from many client companies, PEOs can negotiate with major carriers for plan options and rates that small businesses could not access independently.