Group Health Insurance Plans

A group health insurance plan is an employee benefit offered by an employer that provides health insurance to the members of the group. Most companies offer employer-sponsored group health plans and more than half of Americans get insurance coverage through their employer.

Under the Affordable Care Act (often referred to as Obamacare), there is a distinction made between small and large group health plans based on the number of full-time or “full-time equivalent” employees. According to the new health care law, any employee that averages at least 30 hours per week for more than 120 days out of the year is considered a full-time employee.

Currently, any business with 100 or less full-time employees counts as a small business. Due to the new healthcare laws businesses with more than 50 full-time workers are required to offer a qualified ACA group health plan to their employees or face a financial penalty.