Some companies are obligated to supply health insurance to workers. For example, companies with at least 50 employees can face large penalties for not providing health insurance coverage for at least 95 percent of their workers, provided those workers are full-time employees. Health insurance incentives are also often used by small companies to encourage employee retention.

Due to the requirements of the Affordable Care Act (ACA), many employers must also provide medical coverage for the children or equivalent dependent family members of their workers. Although, coverage for spouses is optional.

In many cases, obtaining health insurance through an employer is a good idea. Often, employer-based medical insurance plans are cheaper than certain other alternatives. Your employer may even cover a large portion of your premium payments for you.

However, employer-based insurance is not for everyone. You obviously cannot qualify for employer-based insurance if you are unemployed. You also cannot qualify as:

• A Self-Employed Individual
• A Part-Time Worker
• An Employee of a Small Company That Does Not Offer Employer-Based Health Coverage4

If your company does offer employer-based medical insurance coverage you are in the majority. Employer-offered plans are among the most commonly used health plans in the United States. One reason they are so popular is they are group plans.

That means the issuing company looks at the group demographics as a whole when determining risk factors and rates.

If you are an older employee, a group plan may be particularly beneficial for you. That is because older individuals are considered at higher risk for developing various medical conditions.

Therefore, insurance providers tend to charge them more for medical coverage. When older people and younger people are part of the same group plan, a certain balance is achieved. Insurance provides often provide reduced rates for such plans due to that balance.

Another reason to possibly consider signing up for health insurance through your employer is employer-based insurance is subject to certain minimum requirements.

Often, employers surpass those requirements. For example, employers are legally obligated to pay a minimum of 50 percent of the premium costs for their employees. However, the national average paid by employers is 82 percent.

If you qualify for an employer-based coverage plan the next step is to see what kind of coverage your employer actually offers. You may not like the plan that is available.

If you feel it is not right for you, you can apply for insurance on your own. Similarly, if you do not have an employer or meet the requirements for getting insurance through your employer, government plans and other options discussed in previous slides are still possibilities.

Take the time to weigh all options and locate the plan that offers the levels and types of coverage you want before you finalize your decision.