The Truth About Group Health Insurance
Group health insurance is a great benefit to offer employees to make your company or organization competitive. This insurance can provide coverage not only to workers, but also to their dependents. It is especially desirable when a portion of the premiums are paid for, which lowers the out-of-pocket costs for employees. It’s no mystery why about 169.3 million Americans receive insurance through the workplace. Everyone benefits. Employers benefit from tax deductions for offering coverage, and employees benefit because compensation to meet premiums is untaxed. We’ve outlined some of the major points to keep in mind when considering group health insurance:
What are the options?
The business owner picks the insurance company, the type of insurance, the amount of coverage and the amount employees will be charged. There are three types of managed care group plans that employers can choose from. They are: Health Maintenance Organization (HMO), Preferred Provider Organization (PPO) and Point of Service Plans (POS).
Health Maintenance Organization (HMO): You select an HMO physician to be your primary health care provider and manage all medical care. Out-of-network means out-of-pocket expenses.
Preferred Provider Organization (PPO): Unlike an HMO, you can venture outside your network and still be covered. However, it often requires you to pay co-insurance.
Point of Service Plans (POS): A combination of an HMO and a PPO, the POS health insurance plan allots a primary physician, but if you go out of your network, then your plan will still pay most of the bill.
How will the Affordable Care Act affect my group health insurance?
The ACA, also known as Obamacare, will be in full effect on January 1, 2014. At that time, it is required that nearly all Americans obtain health insurance coverage. The law states that companies with fifty or more employees must offer affordable health insurance options or face financial penalties. However, to create a smoother transition, businesses will not be required to provide coverage, including group health insurance, to employees until 2015. Luckily, this will not affect eligibility for premium tax credits, so workers can still obtain affordable coverage in the absence of an employer-sponsored plan. Until 2015, it will vary by employer on whether the delay positively or negatively impacts you.
Request a free health insurance quote online or contact an agent with any questions or concerns. Call toll-free today at (800) 889-5803. We looking forward to hearing from you and getting you started on your group health insurance plan!