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Ask a trusted colleague on the type of health insurance costs less - group 
or individual coverage - and I bet you'll hear, hands to down, group policy is cheaper. After all, your small group helps to spread the risk, right? The answer may surprise you.
In reality, the individual costs of health insurance, on average, about 40 percent less than comparable small coverage group health insurance.
Of course, how you and your employees will save by buying individual policies health insurance (not group) will depend on your location and the employee census.
To get you started, we'll walk through the differences in the cost of insurance individual and group health, then take a look at how this is a victory for the benefit of small businesses
note -. This blog is based on our new infographic, 7 truths about the cost of health insurance in America. Check out the full infographic here
The health insurance costs -. vs. group individual
For single coverage, an individual policy costs $ 3,587 per year on average - a 43 percent savings compared to the coverage group average $ 6,251 per year. Factor in the tax subsidies available for individual coverage and savings increase to 60 percent per year
For family coverage, an individual policy costs $ 10,739 per year on average -. A 39 percent savings compared to the coverage group average $ 17,545 one year. . If eligible for tax subsidies, savings for the average single family coverage to 68 percent
See full Infographic: 7 truths about the cost of health insurance America
Why the individual health insurance costs less
for the majority of small groups, individual health insurance is more affordable because of the size of the risk pool. With individual health insurance, insurance companies spread the risk over a much larger group - hundreds or thousands more individual consumers enrolled in the plan. With group insurance, the risk is spread among your 10, 20 or 100 employees enrolled in the plan.
Additional savings come in for employees who are eligible for tax subsidies in the market. In 2014, 87 percent of those who have chosen a health plan through Healthcare.gov received a grant and paid an average of only $ 82 / month.
Added an employer contribution
When you look at the data it is clear enough individual insurance has its financial benefits, but what about a contribution of 'employer? Companies can make a contribution, as you would with a group policy?
Yes. Companies can offer a contribution from the employer.
A compatible option is to set up a repayment plan of the health tax benefits (HRP). HRP is as a business expense account for health insurance; a way to give employees a monthly allowance of health care. Using their HRP funded by the employer, employees can be reimbursed tax free for their qualified health insurance policy costs
Another consistent option is to increase wages or gross wages employees -. A taxable allowance or bonus to help with the cost of health insurance.
Conclusion
in terms of meeting the expectations of employee benefits, health benefits are an important component of total compensation. Yet the cost of group health insurance is the number one challenge of operating large and small employers, as well.
To achieve cost savings and provide employee benefits like, consider using individual health insurance as the foundation of health benefits. On average, individual health insurance costs about 40 percent less than the group health insurance coverage and employers can continue (or start) to contribute by setting up a repayment program of 'Health Insurance.
Do you have questions about the cost of individual health insurance or small business benefits strategies? We would like to help. Leave a comment or question below.
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