What Types of Group Protection Do Most Employers Provide?

Individuals would always choose the more convenient insurance protection: one that is less expensive, and at the same time gives the most benefits. At times, it’s not the individuals who choose their own policy. There are cases where the employer applies for insurance for their employees.

Most employers avail of group health insurance. This is somehow an excellent strategy for attracting or hiring new staff. However, to do this, a company needs to note some points first before choosing a plan. One has to do extensive research on the various group insurance providers and their respective coverage.

Any small enterprise, comprising of about 2 to 50 employees can obtain a group health insurance. There are actually two ways by which a company can offer health insurance to its employees, and whichever way one chooses depends on the company’s budget allocation for health care.

Different small businesses which offer group health insurances to its employees help by covering a portion of the plan’s cost. However, if an employee decides to include members of his family in the plan, the employer may offer the same plan but they would have to pay for the premiums the members of their families.

Another thing to consider when choosing an appropriate health insurance plan is whether to choose either a fee-for-service plan, or managed care.

Managed care insurance plans include Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), and Point of Service Plans (POS). An HMO will significantly decrease the cost which the members have to pay for medical care, as long as they avail of the providers specified by their HMO. A PPO does not require a referral for the insured to visit a medical professional or physician. Even though the PPO is more flexible, a physician’s visit will cost more, and there might be greater annual deductibles. Basically, the POS plans are a combination of the features one will find from both HMO and PPO. Members can choose to pay a physician through the network’s flat fees, or pay a deductible charge to see a physician who is outside of the managed care plan’s network.

On the other hand, the fee-for-service plan allows the employee to choose their own health care provider. With this, the employee is given more flexibility in selecting the medical institutions, as well as professional whom they want to consult with.

Usually, companies provide four major types of insurance. These are: life, accidental death and dismemberment (A D&D), disability, and health or medical. Aside from that, employers may also provide auxiliary or secondary insurance such as group legal, travel accident, and vision and dental care.

Individuals seeing a medical expert will be given a declaration that they have to sign. This is a form of acknowledging that the health care institution has notified them of their conformity to the HIPAA or Health Insurance Portability and Accountability Act Protection Laws. This protects the privacy of the patients, including all gathered health information relating to the patient.