How to Choose the Right Group Health Insurance for Your Business
Choosing the right group health insurance for your business is a matter of balancing the needs of your employees with a premium you can afford. The cost of health insurance rises each year, and it’s harder than ever for small businesses to provide quality insurance to their employees. Consequently, it’s important to shop around for the most cost-effective group health insurance plan you can find.
The first step to choosing group health insurance for your business is to educate yourself about your options. The two main types of group health insurance are reimbursement plans and managed care. Reimbursement plans offer employees the most flexibility and usually provide the most coverage, but they are also the most expensive. Managed care plans are far less expensive for employers, and they are also the most common choice.
There are three types of managed care plans. Health maintenance organizations (HMOs) provide insurance based on pre-designed care guidelines. This is the least expensive type of managed health care, but it also has the most restrictions. Preferred provider organizations (PPOs) are similar to HMOs, but they also provide some level of coverage for out-of-network physicians, and they are typically less restrictive in their care options and policies. Point of service insurance (POS) is the third form of managed health care. This type of insurance combines features of both HMOs and PPOs allowing members to choose what type of service they want when needed.
There are many different features you have to consider when choosing a group health insurance plan for your business. In general, however, you there are some features that are must haves for any group health plan. Make sure group health insurance plan includes coverage for hospitalization, surgical costs, physician costs, and major medical costs. These are the primary health care benefits. You can add additional coverage to your group health insurance plan including maternity coverage, prescription coverage, dental coverage, and more. Be aware, however, that with each additional coverage you choose, your premium will increase.
Your premium costs also depend on how much you expect your employees to contribute to their health insurance. It’s common of employers and employees to split the cost of health insurance somewhat. This can be done in a number of different ways. First, your employees can pay a reduced monthly premium. This figure is generally far less than they would have to pay for individual health insurance. Co-payments are also commonplace. Co-payments, or co-pays, are usually collected at the time of service and go towards paying for part of the medical expense. Most group health insurance plans have a deductible, or an amount that has to be paid by the insured before benefits kick in. Finally, coinsurance is how much the insured has to pay after the deductible is met.
Adjusting the levels of employee premiums, co-pays, deductibles, and coinsurance will help you find a premium your business can afford. The goal is to provide your employees with as much coverage as possible while making sure that both you and they can afford the payments. Take the time to research the different plans available, and seek the help of a qualified insurance agent to help make your decision. Your employees and your bottom line will thank you.