The Different Types of Group Health Insurance
When you’re searching for a group health insurance plan for your business, you need to know which ones benefit you the most. While one may look good at first glance, there may be conditions that make it less than ideal.
Before you decide on a plan, know which one is most compatible with your business.
Many businesses opt for fully insured plans because of the low risk. These plans mean that your
company pays a premium every year for insurance. If an employee has high healthcare costs—for
example, due to a catastrophic illness—the insurance company covers it.
Self-funded insurance plans work like fully insured plans with one major difference. Instead of the
insurance company covering any cost risks, those costs fall to your business. That’s why most companies
who choose these plans are more established.
Instead of an annual premium, level-funded plans use a census to decide on a monthly rate for your
business. At the end of the year, your insurance provider calculates the average month-to-month
payment and charges based on that.
Health Maintenance Organization (HMO)
An HMO allows people within the group to go to specific healthcare providers with coverage. However, if
you go to a provider outside your network, you may pay out of pocket for services.
Preferred Provider Organization (PPO)
PPO plans work like HMOs, but with a broader range of healthcare providers. You also pay higher
premiums in exchange for having more options.
High-Deductible Health Plan with a Savings Option (HDHP/SO)
HDHPs have low premiums, but with the disadvantage of a higher deductible. However, if the plan allows you to have a Health Savings Account (HAS), you can save for your medical costs and be prepared for
Group Health Insurance Plans with Life143
Life143 can give you the best group health insurance plans for your business. We offer several plan options, and we’ll help you find the one that meets your needs. Call us at (718) 878-6484 or contact us
online for more information.