is not a government website and is privately owned.

Group Health Insurance FAQ

group health insurance faq

The following are the most frequently asked questions about group health insurance: what it is, how it works, and where to find the best premiums and deductibles.

These group health insurance FAQs outline the most vital information for consumers to make a sound decision on health coverage.

What is group health insurance?

Essentially, group health insurance plans work well for businesses that wish to offer health benefits to employees.

Group coverage differs from individual coverage because consumers will have to pay for premiums, deductibles, and co-pays.

Employers share these costs as employees pay into the plan through modest deductions from monthly paychecks.

Overall, group plans cost less on average, which is why some small businesses prefer group insurance.

How much do group health insurance plans cost on average?

Insurance companies give better rates to group plans than individuals. From insurance companies' perspective, having a group plan lowers their risk, thus passing along savings to policyholders.

At the time of this writing, the average price of employer-sponsored group health insurance was approximately $7,000 annually for single coverage (i.e., plans that don't cover dependents).

Depending on the type of group plan, businesses will pay a significant portion of yearly premiums, leaving deductibles and the remainder of premiums costs for consumers to pay out-of-pocket.

Are all group health plans the same?

No, group plans aren't one-size-fits-all; insurance companies can offer a broad range of group health insurance.

For example, some group plans allow employees to choose their benefits; others force employees into one benefits package.

The situation truly depends on the level of coverage an employer purchases.

Under the Affordable Care Act, does every business need to provide group insurance to employees?

No, no law states employers must provide coverage no matter how small they are. The ACA says explicitly that 50-100 employees are the cut-off for small group insurance requirements.

The provisions of the ACA state that a company with more than 50 full-time equivalent employees must offer health coverage.

Group health plans are the ideal solution if businesses can afford the annual premiums and have the means to deduct cost-sharing from employee's salaries.

The caveat is that businesses with less than 50 full-time equivalent employees don't have to provide health insurance.

In this instance, employees would have to carry private insurance plans subsidized by state and federal marketplaces.

Adding to the confusion, the Obama administration in 2016 delayed regulations for small group insurance, which would have altered the definition of "small group" to a minimum of 100 full-time equivalent employees.

What is a full-time equivalent employee?

The ACA defines full-time equivalent employees as a collection of part-time workers whose total labor amounts to the hours worked by a full-time employee.

The typical 40-hour workweek adds up to 2,080 hours annually. Since some businesses don't rely on many full-time workers (e.g., restaurants and bars), they choose to hire a team of part-time workers instead.

The intent of the ACA's provision for equivalent employment is to discourage businesses from using an utterly part-time labor force to circumvent ACA employee protections and avoid fines.

Are group health insurance plans for all businesses?

Businesses with at least one employee can purchase specific group health plans, but this feature doesn't apply to every insurer. They can still set requirements on what they consider groups.

Can businesses choose to cover only some employees but not all?

Yes, businesses can choose which employees they include in a group plan. The catch is that this decision can't be discriminatory, unfair, or illegal.

For example, employers can exclude hourly workers or part-time workers from group plans, only providing health coverage for salaried employees.

The key is that the decision needs a justifiable business objective, not excluding employees to save a buck or two on premiums.

Can a family purchase a group health insurance plan?

The answer to this question is another source of confusion for consumers.

Technically, family health insurance is a separate offering from group coverage as families' health needs differ from employees' general health needs.

An individual health plan might automatically include coverage for dependents, but some programs don't.

The situation depends on the type of coverage purchased as insurance carriers have wide latitude in paying out benefits and who gets coverage and who doesn't.

How to find group health insurance quotes works hard to streamline the search for health insurance, helping consumers find the best health plans and rates.

Usually, searching for health insurance is a time-consuming, complicated process. Consumers don't have a way to quickly compare premiums, deductibles, co-pays, and benefits without doing a lot of research.

In particular, group health insurance is popular among small businesses, but it's not easy to compare rates nationally.

Health insurance benefits and costs differ based on the type of plan consumers choose, so gives patients a simple online platform to compare rates.

A short personal interview and a zipcode are all consumers need to start comparing prices.

The information patients need to provide are:

  • Gender
  • Date of birth
  • Pre-existing health conditions
  • Marital status
  • Major life events (e.g., moving to a new state)
  • Tobacco use

Also, consumers will need to input necessary contact information, including a 2020 income estimate.

Click to find the best group health insurance plans for 2021 and learn more about

Speak to a Health Care Agent
(844) 538-6414
Mon-Fri: 8am-10pm EST
Sat-Sun: 9am-5pm EST TTY users 711
Hours: 8am - 8pm
7 days a week

QuoteLab, LLC
700 S. Flower St., Suite 640,
Los Angeles, CA 90017 is operated by Quotelab, LLC, which is an independent broker and is not a federal or state Marketplace website. This website is owned and operated by QuoteLab, LLC, a licensed insurance agency, NPN #19911386. Invitations for application for health insurance on QuoteLab, LLC, only where licensed and appointed. License numbers are available upon request and are provided where required by law. QuoteLab's license information can be found at

Federal Contracting Statement: Plans are insured or covered by a Medicare Advantage organization with a Medicare contract and/or a Medicare-approved Part D sponsor. Enrollment in the plan depends on the plan’s contract renewal with Medicare.

TPMO Disclaimer: We do not offer every plan available in your area. Currently we represent [73] organizations which offer [5110] products in your area. Please contact or 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Please note that these numbers provided are not specific to your area but rather represent the number of organizations and the number of products available on a national basis. We will connect you with licensed insurance agents who can provide information about the number of organizations they represent and the number of products they offer in your service area.

Submitting this form does NOT affect your current enrollment, nor will it enroll you in a Medicare Advantage plan, Medicare Prescription Drug plan, Medicare Supplement Plan, or any other Medicare plan. QuoteLab, LLC is independent of the Medicare program and is neither associated with nor endorsed by The Centers for Medicare & Medicaid Services (CMS) or any other governmental agency.

The plans represented on are Medicare Advantage HMO, PPO and PFFS organizations and stand-alone prescription drug plans with a Medicare contract. Enrollment in any plan depends on contract renewal. If you are paying Medicare Part B premium, you must continue to pay it to maintain coverage.

Not all plans offer all of these benefits. Benefits may vary by carrier and location. Limitations and exclusions may apply.

Every year, Medicare evaluates plans based on a 5-star rating system.

Part B Premium give-back is not available with all plans. Availability varies by carrier and location. Actual Part B premium reduction could be lower. Deductibles, copays and coinsurance may apply.

Based on median Medicare Advantage benefit amounts for dental available across multiple plans and metro areas. Not all benefits available in specific plans or regions.

This information is not a complete description of benefits. Contact the plan for more information.

Limitations, copayments, and restrictions may apply.

[Benefits, premiums and/or copayments/coinsurance] may change on January 1 of each year.

Enrollment in a plan may be limited to certain times of the year unless you qualify for a special [election/enrollment] period or you are in your Medicare Initial Election Period.

Advertised Pricing:

There are several factors that impact your monthly premium; including your age, geographical location, annual income, dependents, and the type of plan you choose. Monthly premiums do not include out-of-pocket costs. is operated by QuoteLab, LLC, which is an independent broker and is not a federal or state insurance Marketplace or other website. It does not provide access to any federal or state marketplace or exchange. This website is owned and operated by QuoteLab, LLC, a licensed insurance agency, NPN #19911386. Invitations for application for health insurance are made through QuoteLab, LLC, only where licensed and appointed. License numbers are available upon request and are provided where required by law. QuoteLab's license information can be found at

This website does not provide information about specific health plans, or enable visitors to obtain insurance quotes, on this website. However, if you provide your information and consent, we will transfer your information to insurance carriers and brokers that may contact you to offer Affordable Care Act (ACA) plans, short-term plans, medical indemnity plans and/or healthcare sharing ministry plans, and we will receive compensation for such transfer. The advertisements appearing on this website are placed by clients from which QuoteLab, LLC receives compensation, and such compensation may impact whether such advertisements appear on this website and the order in which they appear. is required to comply with all applicable federal law, including the standards established under 45 CFR 155.220(c) and (d) and standards established under 45 CFR 155.260 to protect the privacy and security of personally identifiable information. This website does not provide a complete listing of, or display all data on all Qualified Health Plans being offered in your state or service area through the Marketplace website or the federal Medicare program. To see all available data on Qualified Health Plan options in your state, visit your state Marketplace website, go to the Health Insurance Marketplace website at

This site uses cookies and tech to collect data needed for our services to work including to process your requests, personalize your experience, and measure the effectiveness of content we show you, among other business purposes (Learn More). We share this data with the business partners we connect you with, who may combine it with data you provide to them or they collect from you (Learn More). To learn more about cookies and how to disable them, read our Privacy Policy.