How to choose a group health insurance plan
For many people, affordable health insurance is hard to find. One of the best ways to get health insurance is through an employer, which makes employee group health insurance a big draw in the business world. Many people are willing to accept a lower salary or will have increased company loyalty when they know they have the security of medical coverage.
Offering group health insurance is an important consideration for any business. While most employers want to offer it for the sake of their employees, it can be a big expense. You can offer affordable health care coverage to your employees by understanding the various options and knowing the features that matter most to them.
How Employee Health Insurance Plans Work
Most employee insurance plans are conducted on a co-pay model, in which the employer pays for part of the premium and the employee covers the rest. Generally, the employer pays the majority, with the average split being 85 percent employer to 15 percent employee. Employers may also extend coverage to family members of the employee at the same split or sometimes at a slightly lower split of 75 percent to 25 percent.
The size of a company usually determines how employee health plans will work and how premium rates will be decided. Professional insurance brokers or lawyers will be able to help a company figure out the category they fall into, and can help employers understand the criteria they must meet when choosing an insurance plan.
Features of Group Health Insurance Plans
Employee health plans can be customized to include various features and accommodate various costs. Generally you'll want to gather a variety of health insurance quotes in order to find the best rates and features that will work for your company and your employees. Common features included in group health insurance include:
- Vision (glasses and eye exam)
- Dental (orthodontia excepted)
- Medical services (includes physical therapy, massage therapy, nutritionist, etc.)
- Emergency services (covers the cost of an ambulance)
One relatively new feature that many employers are adding to their packages is the health care flexible spending option. This feature allows employees a certain amount of money each year to spend on the coverage area they desire. For example, they may wish to add it to their existing physiotherapy or eye care coverage, knowing they typically spend more in that area.