Things You'll Need
Employee records detailing age, health and job description
Determine the Basis of Group Health Insurance
Consider the health status of the employees. In order to accurately calculate the cost of insuring your employees, the overall health condition of each employee should be considered. If there are employees with ongoing medical issues, the cost of providing care will be considered in the premium calculation.
Look at age as a factor to calculate the cost of insurance. While it is considered discrimination to avoid hiring someone because of age, it is a consideration for insurance carriers in determining the anticipated cost of health insurance coverage. Generally, older adults have more chronic health issues than their younger counterparts, and that raises the cost of premiums for the group.
Look at the job descriptions of the personnel. If they are regularly exposed to environmental hazards such as chemicals or the use of dangerous equipment, your premiums will be higher than if they worked in more environmentally friendly places.
Accept the fact that you must calculate the cost of health insurance in relation to your geographical location. The difference in locating a business in a small, rural community instead of a metropolitan city can be a major factor in insurance premiums. Likewise, some parts of the nation are more costly than others.
Determine if the group health insurance plan should be calculated to include the option of disability coverage, dental and/or life insurance. The add-ons may be offered to the employees at a full or reduced premium.
Acknowledge the impact that the use of tobacco can have on insurance premiums. If many of your employees use tobacco in any form, there is a good chance the cost of group health insurance will be rated up.
Find a reasonable cap for the benefits of group health insurance. Plans vary from less than a million to 10 million dollars or more for total payout on individual claims. The amount of cap will factor into the cost of the group policy.