Benefits of employer-provided group health insurance include the contributions employers make toward the cost of monthly premiums, the ability of employees to contribute to some plans on a pre-tax basis, and the ubiquity of coverage for all eligible employees, reports the National Association of Health Underwriters. Additionally, the Employee Retirement Income Security Act and the Consolidated Omnibus Budget Reconciliation Act provide federal regulation and protection for employees and other beneficiaries of group health plans, states the U.S. Department of Labor.
Employers provide group health plans and pay half or more of premium costs to attract and retain talented employees, explains the National Association of Health Underwriters. Because employees do not pay taxes on employer contributions and contribute pre-tax funds to the premium-only plans that most employers offer, group health plans yield significant tax savings. Insurance companies cannot deny coverage to employees in group health plans due to preexisting health conditions. Additionally, they must renew group health programs as long as employers meet the insurance contract conditions. Although individual plans vary considerably, they must meet payout benchmarks that the Affordable Care Act stipulates.
The Employee Retirement Income Security Act stipulates that employers must provide employees with information about the plan, and insurance companies must meet financial standards of conduct, according to the U.S. Department of Labor. The Consolidated Omnibus Budget Reconciliation Act provides an extension of group health coverage for employees who lose their jobs or get reduced hours through no fault of their own, or beneficiaries who lose their spouse's coverage through divorce or death.