Traditional Group Health
Traditional Group Health
Simple and ready to go
The coverage option
most businesses already know.
Simple.
Familiar.
Ready to go.
How we got here
1929
Baylor Hospital in Dallas let schoolteachers pay a small monthly fee for guaranteed hospital care.
That idea became the seed of what we now call group health insurance.
1942
The federal government froze wages during World War II.
Employers could not raise pay to compete for workers.
So they started offering health coverage instead.
Benefits were not covered by the freeze.
United States House of Representatives, Office of the Law Revision Counsel, uscode.house.gov
1954
That tax-free treatment was written directly into Section 106
of the Internal Revenue Code.
It has stayed that way ever since.
Section 106 of the Internal Revenue Code
The modern update
2010. The Affordable Care Act was signed into law.
2014. Its major provisions, including required minimum benefits, went into effect.
That is the version of Traditional Group Health most businesses have today.
What this means for your business
Comprehensive coverage.
Fixed monthly premiums.
Less control over plan design.
Small groups often pay more under Traditional coverage.
Premiums are based on the entire insurance pool, not your specific group's health
Q: What is Traditional Group Health insurance?
A: A standard employer-sponsored health plan with fixed monthly premiums and comprehensive coverage.
Q: How is it different from Level Funded coverage?
A: Traditional premiums are based on the entire insurance pool.
Level Funded pricing is based on your specific group's health.
Q: Is Traditional Group Health more expensive for small groups?
A: Often, yes.
Small groups typically pay a larger share to help cover less healthy groups in the same pool.
Not sure if Traditional is the right fit, or if Level Funded would save your group money?
Let's zoom and get to know each other!
General Disclaimers/Disclosures to Satisfy the Attorneys/Legal Dept
I am a licensed Insurance Agent in any state I do business in
I am not an attorney, I do not give legal advice but I know some if you need one
I am not an accountant, I do not give tax advice but will direct you to talk to one and have some I can introduce
I am not a doctor, I do not give medical advice but I can help look up doctors in your network
I represent multiple carriers so I have more options for you
I mainly do virtual appointments, I live on top of a mountain in the middle of nowhere (about 45 minute to Crossville...you know, the BIG CITY ;)
And an hour north of Chattanooga TN
Some policies are guaranteed issue, some require underwriting
Your privacy is important to me, if you are referred to me by someone, I might tell them "Thank you for the referral" but will not use your name or discuss our conversation
Not all products are available in all states
We do not offer every plan available in your area. Currently we represent 4 organizations which offer 26 products in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options
AgentDavidCares.com does not provide tax advice. Tax savings vary by individual. Please consult your accountant or tax advisor.
Updated 08/23/2026
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