As an HR manager or business owner, one of the most important decisions you’ll make is how to provide health insurance coverage for your employees. Two common options are group health insurance and individual health plans, but understanding which is best for your team—and your budget—requires a clear look at both.
What Is Group Health Insurance?
Group health insurance is coverage offered by an employer to employees (and often their families). It’s one of the most valued employee benefits, contributing to both job satisfaction and retention.
Key Benefits:
- Lower premiums due to risk pooling.
- Employer contributions help reduce employee costs.
- Access to more robust networks and plan options.
- Easier for employees to enroll—no need to shop individually.
Group plans are especially beneficial for mid-sized businesses that want to compete for talent while managing costs efficiently. Many plans can be customized with dental, vision, disability, and wellness benefits, creating a comprehensive package.
What Are Individual Health Plans?
Individual plans are purchased directly by employees through the health insurance marketplace or private carriers. Employers that don’t offer group plans sometimes give a taxable stipend to help employees pay for these.
Why Some Employers Consider This:
- Easier administration (especially for small teams).
- No direct financial responsibility for a group plan.
- Employees have more flexibility to choose what suits them.
However, individual plans may result in higher premiums, limited provider networks, and less consistency across your team.
What’s Best for Your Business?
If you’re looking to build a competitive benefits package, group health insurance usually offers better value—for both your business and your employees.
It supports:
- Retention and recruitment
- Predictable budgeting with level-funded or fully insured plans
- Tax advantages for employers and employees alike
For businesses with 10+ employees, group coverage often provides the best mix of value, flexibility, and employee satisfaction.
Need Help Choosing the Right Fit?
At Webb Insurance, we help HR teams and business leaders design custom benefits packages that balance coverage with cost. Whether you’re looking to launch your first plan or optimize what you have, we’re here to guide you every step of the way.
Let’s discuss your goals. Message us or visit webbinsuranceinc.com to schedule a consultation.