Approximately 66.8% of adults in the United States have a private insurance policy. A large percentage of these individuals receive employer-sponsored health insurance as a benefit.
These types of insurance policies are also called group health insurance plans, and they have several benefits. This post will provide you with a brief overview of group health insurance and help you decide if it meets your healthcare needs!
What Is Group Health Insurance?
Group health insurance provides healthcare coverage to many members, usually those who work at the same company. Typically, this type of insurance is more affordable because the insurer’s risk is lessened by spreading it across a group of policyholders.
You don’t have to work at a large company to benefit from group health insurance. Even businesses with only two employees can often find reasonable small group health insurance plans.
How Does Group Health Insurance Work?
Companies and organizations can purchase group health insurance plans and offer them to their employees or members.
After the organization chooses a plan, they give the members the option of coverage, which they can accept or decline. Usually, the insurer requires at least seventy percent participation, but this can change according to the insurer and policy.
Moreover, some plans have tiers of coverage, with the basic level being supplemented by the employer. Then, employees can purchase add-ons, such as dental insurance.
They may also offer employees the option of extending their coverage to immediate family members and dependents for an additional fee.
Since so many people participate in the plan, the cost is typically lower for larger companies than small business group health insurance.
Types of Group Health Insurance Plans
There are a number of group health insurance plans, allowing most companies to find an option that meets their needs. Let’s get a better understanding of the most popular plans.
Health Maintenance Organization plans are flexible and give their employees the ability to choose their primary care provider (PCP). If they have a specific health problem that requires the care of a specialist, their PCP will refer them to one.
The only downside of HMO plans is that insured individuals can not seek medical care from any professional operating outside the network.
Preferred Provider Organization plans are similar to HMOs, but they offer insured individuals the freedom to choose from more doctors. They can even choose medical professionals outside of the network.
Exclusive Provider Organization plans are somewhere in between an HMO and a PPO. They are generally more flexible than an HMO but more affordable than a PPO.
If you want to find the plan that fits your company’s needs, it is best to contact a group health insurance broker such as Intermountain Business Insurance.
Save Money with a Group Health Insurance Plan
Group health insurance plans are an excellent perk to offer your employees or club members. They make health insurance more affordable for everyone, allowing them to get the care they deserve!
If you would like to learn more about group insurance plans, be sure to reach out to a reputable insurance broker in your area since they will be able to answer all your questions and give you a quote.
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