A small group in insurance is typically defined as a group of employees who work for a company that has anywhere from 2 to 50 employees. This type of health insurance is generally purchased by small business owners or self-employed individuals who want to offer their employees the benefits of a group plan without the exorbitant cost of a large group policy.
Small group insurance plans usually cover medical expenses including doctor visits, hospital stays, prescription drugs, and laboratory tests. However, these plans may also offer additional benefits such as dental and vision care, disability coverage, and life insurance. The benefits provided by small group insurance plans often depend on the type of policy and the size of the company.
One of the main advantages of small group insurance is that it is usually cheaper compared to individual or large group insurance plans. This is because a smaller risk pool means that the insurer is taking on less risk and is, therefore, able to offer more affordable premiums. Additionally, small group plans are often customizable, allowing employers to choose the level and type of benefits that they offer to their employees.
Small group policies also often come with additional benefits such as lower deductibles, out-of-pocket maximums, and co-payments compared to individual plans. Small group insurance plans may also provide better access to care for employees, as they can access the same network of providers as larger group plans. This can be particularly advantageous for small businesses who are trying to attract and retain top talent.
In summary, a small group in insurance refers to a group of 2 to 50 employees who are covered under a health insurance plan purchased by an employer. Small group insurance plans are customizable and can provide affordable access to quality healthcare for employees while also helping small businesses attract and retain top talent.
