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Small Business Employee Benefits and HR Blog

What is Group (Employer-sponsored) Health Insurance?

August 7, 2010
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A group (also known as "employer-sponsored") health insurance plan covers an individual and their family members.  Unlike individual health insurance, group health insurance is purchased by an individual (or family member) indirectly through the individual's (or family member's) employer.  Group health insurance is dependent on an individual's (or family member's) employment.

Group health insurance plans are declining in the United States.  The number of people covered by group health insurance plans has substantially declined—less than 50% of small businesses offer group health insurance today.

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