Employee Health Insurance
Why do you need employee health insurance? No insurance can totally remove the unpredicted problems you may face in future. However, its main purpose is to lessen the impact of such unpredicted problem so that its effect remains as low as possible. Therefore irrespective of whether you are employed or self-employed, employee or employer, today you need health insurance coverage.
Group Health Insurance For Employees
The most common health insurance targeted especially at employees is a group health insurance plan, which they get through their employer or the organization with which they work.
There are several employers who offer several plans to their employees to choose from including indemnity and managed care programs. On the other hand, there are other employers who offer only one plan to their employees. Some plans offer dental and/or vision care in addition to medical benefits.
Therefore benefits vary from plan to plan, which makes it necessary to compare different plans in order to find the one plan that suits you the most. This becomes even more important considering the fact that after enrolling once into any program, you can’t change your plan until the end of the coverage usually which is usually one year.
Cost Of Coverage For Health
Insurance Of Employees
If you have enrolled into any group health insurance plan as part of the employment benefit, usually the employer pays certain share of the total cost of the premium. However, there are employers who pay the complete premium.
But in case of a portion of the cost of the premium being paid by the employer, you will have to pay the balance amount. This is the reason why group insurance plans offered by employers, as part of the employment benefits, are cheaper compared to the individual health insurance plans.
Indemnity Or Managed Care?
Indemnity Insurance: This plan offers flexibility in choosing healthcare providers such as doctors, hospitals etc. In fact, you can choose any doctor of your choice and you also have the option of changing the doctor as per your choice. However, this requires good amount of documentation.
Managed Care: Most of the insured American is enrolled into a managed care plan, which is based on a network of service providers. This plan offers wide range of health care services, which reduces the cost for the patients if they use services providers from the network.
The different types of managed care plans are:
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Health maintenance organizations (HMOs)
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Preferred provider organizations (PPOs)
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Point-of-service plans (POS)
Factors For Comparison Between
Indemnity And Managed Care Plans
You should know that indemnity plans do not have network of services providers to offer services where as managed care plans are based on network of service providers. Therefore, their method of operation differs significantly. Therefore, one should chose indemnity or managed care plan on the following basis:
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Process of accessing services
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Process of obtaining/availing services of specialists
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Process and amount of payment for care availed/to be availed.
How Should You Choose A Plan?
Since the benefits vary from plan to plan, it is highly suggested and recommended that you should compare the cost and coverage as well as other benefits offered by different plans. However, you should also be careful of the most common mistake of choosing plans only on the basis of price. There are people who, may be due to lack of information, compare and chose plans only on the basis of price and repent when they, later on, find that they do not have enough coverage.
Therefore, try to compare the cost, coverage and all other features of given plans, side by side, in order to chose the plan which not only suits your budget but also meets your specific needs.
Factors Of Comparison
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Cost of coverage.
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Coverage and benefits.
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Access to physicians, hospitals, and other health care providers.
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Access to emergency and after hours care.
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Coinsurance
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Co-payments
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Deductibles
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Limitations and Exclusions, which must be clearly explained in the policy
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