Overview: As part of their employee benefit programs, some employers arrange for their employees to purchase insurance coverage at discounted group rates. While employees usually pay the full cost of these benefits, the price is typically lower compared to an individual insurance policy.
Examples of the type of insurance employees may be able to purchase at a discount include:
One of the reasons employers offer discounted insurance benefits is to broaden the scope of coverage available to their workers. The advantage of discounted insurance programs is that each employee chooses the type of coverage in which to enroll based on his or her individual needs, personal finances and preferences. This virtually ensures that each worker will be satisfied with his or her level of coverage.
Providing discounted insurance benefits is a low/no cost way to promote the employer's commitment to employees.
Author: Tracy Morley, SPHR, Legal Editor
Updated to reflect the federal tax reform law's effect on commuter/transportation benefits, effective January 1, 2018.
Attracting, motivating and retaining talent is critical to an employer's short- and long- term success. This section assists HR professionals in implementing a comprehensive, integrated total rewards strategy that can help achieve those important objectives.
HR guidance on the advantages of offering discounted insurance benefits.