Group health insurance

Group health insurance is a type of health policy that is purchased by an employer and is offered to eligible employees of the company and their eligible dependents.  The premium cost is often split between the employer and employee. (For more info on how health insurance premiums are calculated, check out this article.)

You can offer small-group health benefits to your team through Gusto—learn how to get quotes and start offering benefits here.

Group health insurance premiums are paid directly from the company to the health insurance carrier. Reimbursement arrangements from the company to employees for individual insurance aren't considered group health insurance plans.

Note: According to recent legislation, some small employers are permitted to set up reimbursement arrangements for their employees but these require establishment of an official Health Reimbursement Arrangement (HRA) and have compliance and documentation requirements in order to be done properly. Employers can be fined significantly for improperly utilizing this type of arrangement. Learn more here.