GROUP HEALTH INSURANCE
The Benefits of Group Health Insurance
For potential employees, the type of health insurance offered by a company may be the deciding factor in which company the applicant chooses to work for. Surveys show that employees tend to value their health benefits over any other type of benefit offered by their employer. Group health insurance plans allow employers to offer their employees valuable health benefits at a much cheaper rate than individual plans.
This type of health coverage is often chosen by employers simply because it attracts new and talented employees and helps keep them around. There are many people who are in need of health insurance, but are ineligible for individual plans. What many people may not know about group health insurance is that it is “guaranteed issue.” This means that the employee cannot be denied coverage due to a preexisting condition. Individual health insurance plans, however, can deny those with preexisting conditions. Ultimately, working for an employer that offers group health insurance is the employee’s only option. Because they need this coverage, they are far less likely to leave their position.
In most cases, the employer and the employee share the cost of the premium. This keeps costs low for both parties while still ensuring that the employee receives important health benefits. Most insurance companies require that the employee pay at least 50 percent of the premium. Larger companies, however, may cover a higher percentage. Many companies also choose to offer coverage to their employee’s dependents as well.
As an incentive for offering group health insurance policies, employers and employees receive tax benefits. The employer can typically deduct 100 percent of the premium and employees can pay for their benefits using pretax money. Again, this helps both parties save even more money.
Most companies offer managed care plans. These come in the form of an HMO, POS or PPO. In the past, HMO plans were quite popular because they used a network of doctors and other healthcare professionals to keep costs low. The only downside to this type of plan is that employees were only able to choose doctors within the network. PPO and POS plans have now become the most popular choice as they offer employees more freedom and are still cost effective. Review different group health plans.
Group health insurance provides both the employer and the employee peace of mind. Should an employee be injured or fall ill, the employee gets the medical attention they need and the employer can ensure that the ill employee returns to work. It also allows employers to attract talented employees that are more inclined to stick around. One of the major reasons why people shy away from self-employment is the fact that individual health insurance plans can be quite expensive.
When choosing a group health insurance plan, it is important to look at what type of coverage is offered. Certain diseases and treatments may not be covered. In some cases, group plans do not cover maternity costs. Employers need to take a look at these factors and keep them in mind when choosing which plan to offer. Employees should find out as much as they can about the policy offered by their employer to ensure that they will be covered.