If you are a business owner, it is important to acquire business health insurance, alternately called group health insurance, to cover the medical needs of your employees.
According to surveys only 1/3 of small business owners provide medical insurance for employees.
This can work against the employer as most people consider this to be such a valuable perk that they would consider a lower pay rate, as long as there is coverage.
Business health insurance differs from individual health insurance in that the overall risk that the policy has to cover is lower, because it is spread over many people.
The policy holder is the employer, and not the individual employee.
This is why the premiums per person are lower, even more so since the cost is typically shared between employer and employee.
The larger the group of people being covered, the lower the premiums would be.
Generally companies that have more than 100 employees are considered large, whereas a company with fewer employees would be considered for small group insurance.
This is why some small business owners still find it expensive to get business health insurance.
The good news is that the amount that employers pay on employee premiums is tax-deductible, and it helps business to retain healthy, productive employees.
One can even argue that it is the "right" thing to do, since employees will not be turned down for pre-existing conditions or medical history, which could definitely happen if they applied for individual coverage on their own.
Group insurance protects workers and their dependents who would otherwise go uninsured, and who wants that on their conscience?