Group health insurance is an affordable form of health care insurance for its employees or members of an organization or business. A group health cover plan usually provides affordable health care coverage to its members at a reduced cost as the risk to the health insurers is dispersed among the group members. It also reduces the expense of group health care premiums for employers. However, if you are not satisfied with your existing group health cover plan or want to upgrade your group health cover plan, there are several options available for you.
Least-cost group health cover plans
One of the popular options is represented by the least-cost group health cover plans that provide coverage for only the bare minimum benefits. This minimum coverage could be provided at the cheapest premiums among all the other group members. Some of these least-cost plans also offer a flexible choice of deductible and premium payments options. These plans are ideal for self-employed members, retired, and students.
Health savings accounts
Health savings accounts or HSA represents another popular option. Health savings accounts or HSA is beneficial to both employee and employer. The employers pay part of the premiums in return for tax-deferred status and guaranteed acceptance into the scheme. Employees can save money each month for their health-related expenses. They pay tax on the amounts that exceed the HSA’s ceiling.
Plan with medical coverage
You can also purchase a group health plan that provides medical coverage to the entire employee organization or group. It allows the employees to take their insurance from an existing employee organization, which reduces their out-of-pocket expenses. These types of plans may be very helpful for small business owners who have many dependent employees. Most of these employee organization plans provide basic coverage for dental, surgical, and hospitalization procedures.
Long-term care insurance
Long-term care insurance or LTCI is another way of providing medical coverage for your employees. Long-term care insurance plans provide inpatient and outpatient care services for qualified individuals who meet certain medical requirements. Usually, long-term care insurance plans provide a monthly income replacement after the disability and death of the policyholder. This type of coverage is usually required when the employee member is under the age of 65.
Most companies offer short-term disability benefits as an option for coverage for employees. Short-term disability policies pay benefits only during the period the member is eligible for such benefits. When a member returns to work, the former employer pays part of the monthly premiums. Most small businesses cannot afford to pay large monthly premiums, so they select short-term disability coverage.
Managed care coverage plan
Small businesses can also choose a managed care coverage plan for their employees. Many managed care plans are similar to HMOs, but they provide coverage for almost all medical procedures. Unlike most group health insurance plans, the small business owner can choose the physicians, hospitals, and other staff members to provide medical services. Most managed care plans also have specific rules regarding the maximum allowable number of office visits.
Small business owners can get more affordable group health premiums by ensuring that they enroll their entire workforce in one of these programs. When each employee contributes to the group, the premiums are lower. Some employers also offer guaranteed issue policies that provide dependents with guaranteed issue coverage at the same rate as other group members. If you want to ensure that each employee is properly covered, you should discuss this with your human resources department.
Certain employers also offer cheaper group health insurance plans than others. Insurance companies that do business in your local area are probably your best choice. These companies usually have relationships with several doctors, hospitals, and clinics in your city. They can set up an appointment to discuss the benefits and options with you. It would help if you also choose the coverage level you want; most group health insurance plans allow you to choose catastrophic coverage or basic coverage.
One of the cheapest group health insurance plans usually consists of at least 70 percent coverage from companies that only do business in your state. The benefit is minimal compared to some plans that have a nationwide network of doctors and hospitals. People usually purchase this type of group health insurance near a network of doctors and medical specialists.
Employer-sponsored groups, health insurance plans are usually the least expensive choice. These plans usually cover your dependents. The premiums for this type of coverage can be low because the company has to pay a percentage of the costs. However, the premium payments can be quite high for those who choose to pay out-of-pocket. Your dependents may not be covered at all if the company’s offer is less expensive.