Health
Group Health Insurance
Here are the most common types of group health insurance policies:
· Managed care plans are the most affordable and usually include either Health Maintenance Organization (HMO) plans or Preferred Provider Organization (PPO) plans. With either plan, insurance companies work with doctors and health care providers to give consumers in-network and out-of-network doctors. Typically, it’s best to visit in-network doctors because you get the most coverage with participating providers. It’s even more important to visit in-network doctors with an HMO because you may not have any coverage out-of-network. For companies buying group health insurance policies, both PPO and HMO plans are an affordable option to provide comprehensive benefits to your employees.
· Cafeteria plans allow employees to pick and choose what benefits they want from a “menu” of health benefits. This type of plan provides flexibility for your employees and is also affordable. This plan allows employees to set aside money for medical costs in a Flexible Spending Account but that money has to be used by the end of the year or else it is forfeited. Cafeteria plans also let employees pay for health care costs with pre-tax dollars.
· Health Savings Account (HSA) plans are also a great option for employers to provide employees with. They are like bank accounts that let employees save up money to pay for health care casts. HSAs have many tax benefits but require that employees to be enrolled in a high-deductible plan like a PPO. The money put into an HSA will never expire and can be used at any time. Also employees will earn tax-free interest with their HSA.