Deciding on the right Group Health insurance plan for your business isn't easy.
As an employer, your desire is to keep employees in good physical health. At the same time, you can't ignore the financial status of the company and choose a plan that covers everything.
Here are 4 decisions that every business needs to make when deciding on Group Health coverage.
Group Health Decisions
HMO or PPO
Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) are the primary types of healthcare plans. PPO plans will offer your employees flexibility when it comes to choosing healthcare providers, but at a higher cost. On the other hand, HMO plans are generally more affordable, but limit the number of doctors you can visit.
Number of Plans
Once you understand how much of the premium your business is willing to pay and the type of plan that fits the makeup of your employees, then you need to decide how many plans your company is going to offer. If you have a wide range of demographics in your company, you may want to consider offering more than one Healthcare plan.
For an employee with dependents, a plan with more comprehensive coverage and a high deductible is fine, as they need the coverage and will be able to meet the deductible. However, employees who don't have any dependents and are relatively healthy, don't need a comprehensive plan, thus a lower premium plan is preferable.
Once you understand the needs of your employees, then you can decide whether you want to offer a selection of plans or just the one plan.
Most Group Health plans require employers to pay at least 50 percent of the employee's premium. The premium shouldn't be the first consideration within a Healthcare plan. However, deciding how much you're willing to contribute towards the premium will help you weed out plans not worth considering.
When you finally start combing through different plans, you need to take a close look at Exclusions listed in each plan. Exclusions are provisions within a Healthcare plan that eliminates or restricts coverage on specific treatments, people and circumstances. For example, traveling abroad is a common exclusion on some plans, so if your business requires frequent travel, you need to check each plan to see whether it's excluded. If you do decide to enroll in a plan with travel exclusions, then Travel Insurance may be an option.
These are just a few of the decisions that business owners need to make when selecting Healthcare options for their employees.
If you're considering Group Health coverage for your company or aren't satisfied with your current plan, please contact Health Agent Dawn Moore. She can work with you to find the right plan for your company.