Article by Ronnie Hamilton
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Tagged Affordable, employer, Group, Health, Insurance, normally, paid, Rates
Article by Jenny Black
Do you own a business organization?If yes, why not ensure the good health of your employees with group health insurance policies? Whatever business you are in, safeguarding you and your employees’ health makes good sense.
Health is wealth. Everyone aspires for a sound health. But no one can predict when or how diseases will strike. Insurance is therefore a good way of preparing for what may come.
Group health insurance policies are those insurance policies where the employer provides for a comprehensive health insurance benefits to his employees and sometimes to his employees family. The cost of the insurance is allotted among the members of this group. The group enjoys a wide range of benefits of Group Health Insurance.
It can help to:*Reduce the number of persons who are absent for sickness*Show to the employees that you genuinely care for them*Increases the productivity level*Reduces liability.. Running a small business organization depends on team work. But what if, someone from that team falls ill. Won’t your whole organization be in danger? Therefore you should ensure that your employees are safe and sound with good and proper health. It can only be done through purchasing a small business health insurance plan for your employees.
Earlier small business health insurance plan was not so common because of the high rate of premium. But now many affordable insurance companies are available in the market.
Generally it is seen that in group health insurance policies, the premium is divided between the employer and the employees. But if it is a very big company, the employer or the owner provides for the whole premium. Even tax incentives are also provided with group health insurance policies. You can cover yourself in group insurance benefits as well
Group Health insurance is very vital for the efficient functioning of an organization. Everyone will agree that the cost of medical treatment has increased day by day. A simple visit can be a huge liability. Because of this, many a times it is seen that the employees try avoiding going to a doctor. Again his family’s health can also be a deterrent to his efficient functioning at office. With an adequate health insurance policy an employer can evade all these setbacks and ensure a healthy working environment.
Before investing in Group health insurance, an employer should read and re-read the quotes as available in the market. He should not buy any plan hastily. Today almost all insurance companies provide online facilities. Therefore search a little and invest in group health insurance for yourself and your employees.
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Article by Shaun mike
Group health insurance is your best bet to get cheap yet comprehensive healthcare. Group plans are inherently cheap and a part of the premium is paid by the employer, thus bringing the premium further down. Accessing group health insurance in Virginia is a popular option among the residents. Though there are numerous advantages attached with group plans, purchasing one is, by no means, a cakewalk.
To begin with, your employer should be providing insurance at work. Then, you need to be eligible for it in accordance to your designation at your work place. A big advantage is that if you apply for group coverage, you cannot be denied or charged more on the basis of your health status. The premium will be decided on the health status of total group. This protection is known as non-discrimination. When a person applies for group health insurance in Virginia, the employer or the insurance company could ask for his health status to know about pre-existing conditions. If there is a claim made within a year, then a company can keep you in a look-back period to see if the disease was diagnosed before the policy was applied for. However, federal and state laws protect you by placing limits on these pre-existing condition exclusion periods under group health plans.Federal law permits the government of Virginia to exempt its employees in self-insured group health plans from some of the protections. This choice is made annually by the public employers. When they do, they have to notify the federal government and inform them about the protection plans that will not be applicable to their employees’ group coverage. Virginia has a large number of public employers who have decided to opt for this provision and have decided that certain protections will not be valid in the insurance plan of their employees. Access to group insurance is not limited to the period you are employed with the company. Though the provision is not forever, you can stay in your group coverage for a limited period of time, if you are leaving your job or losing access to group health insurance in Virginia for any other reason. There are many advantages of purchasing group health insurance in Virginia. Not only are they cheap, but they come with a lot of added benefits as well such as drug and alcohol rehabilitation care. Though group plans are comparatively cheap and a much more lucrative option, there are certain points that one needs to remember before purchasing health insurance in Virginia. – As an employer looking to purchase medical plans for your workers, checking out the plans online would give you more choices to choose from and a cheaper option to purchase. – As an employee accessing health insurance at work, be clear about what part of the premium is being paid by you and what part will be paid by the company. – Do not get carried away by the cheap prices. Check out the emergency rooms, out-of-pocket expenses, the exclusions and the grievances process of the health carrier. When it comes to health insurance, Virginia offers a wide range of options. The carriers are aplenty and so are the plans. Therefore it is important that you choose the right group insurance that perfectly suits your health and financial needs.
Article by Dalvin Rumsey
Perhaps many of you are wondering what a group health insurance policy really means. Well, the answer is not complicated at all! It is just an insurance coverage made by an employer or other authority that is meant to cover all individuals in a particular group!
A group health insurance gives an employer the advantage of not paying the whole premium for the insurance policy in order to cover his employees. In the past, an employer was expected to pay for all the benefits of the employees, but fortunately, now the times have changed and an employer only has to contribute just a part of the health insurance premium of the employees.
The general attitude of the insurance companies is to offer lower rates for a group health insurance than on an individual one. This is the main reason why people who are self employed to be aiming for a small business health insurance too. These persons cannot be blamed, even if they incorporate to give the insurance company the impression of a larger corporation, as they are only trying to get a good deal on their small business health insurance rates. The result is that each and every person struggles to get on an insurance plan, as a small business health insurance is very cheap when compared to individual health insurance.
It is a commonly known fact that group health insurance plans are very much appreciated by all the employees. This is the main reason why most employees value it very much too. A group health insurance policy or a small business health insurance has contributed to the success of many organizations. They have thus enabled them to continuously employ new people and, at the same time, keep the best people in their business!
No matter what group health insurance plans, service suppliers or a health maintenance plans that a company may offer, there are so many places where you can get informed about these things. You must carefully analyze the group health insurance quotes that a number of insurance companies offer, before deciding if there is something to suit your expectations.
In order to make the best decision regarding a group health insurance, a employer must study all the websites and brochures of the health insurance companies that the employer has selected and intends to engage. After comparing their service plans, costs and methods of payment, you must also keep an eye on the starting and ending dates of the insurance policies. The interesting, but disturbing thing is that some health insurance companies only cover you from your third payment, therefore you must be very well informed before making such an important decision.
Last, but not least, there is one more thing you’ll have to consider before choosing a group health insurance plan or a small business health insurance: should there be any services or illnesses that are excluded from the policy, it is best to know it from the start. This is the main reason why it is for the best interest of any employee to keep away from any group health insurance policy that only covers a small number of diseases.
Group Health insurance is expensive and managing employee benefits can be a hassle. Shalin Financial and AI Insurance Group can help you find some of the lowest rates for group benefits in the industry while providing additional services to help you manage your employee benefits better. Shalin Financial has been serving individuals and groups for life & health insurance since 1991. We have assisted thousands of individuals and groups in the Atlanta, GA area. We represent all of the major health insurance carriers in Georgia including Blue Cross Blue Shield of GA, Kaiser Permanente GA, United Healthcare of GA, Aetna GA, Coventry One of GA, Aetna GA and many more
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Article by aber craig
Individual health insurance is very different from group health insurance in some respects. Many people have had group health insurance from a large corporate group plan and that is all that they have ever known. Many have never had to actually pick and choose between different insurance companies and different health plans as all of the decision making was done on their behalf by their employer. Here are a few quick things to keep in minding when searching for individual health insurance.
The underwriting for individual health insurance is different than the underwriting for group health insurance. This is great news if you, your spouse and kids are healthy as individual health insurance rates are much cheaper than a comparable group health insurance plan. It could be a cause for concern if you have some health issues in your past as there is the possibility that the application will be declined due to what is called “pre-existing conditions” in your medical history. Most individual health insurance companies will look back into your health history going back about 10 years. If the application is on a fully underwritten basis and there are major health issues such as cancer, diabetes, heart disease, etc. then the application will be declined. (What do you do at this point? Make sure that you keep your current coverage and elect COBRA benefits or any other form of continuation coverage and when that coverage expires you will want to look for a HIPAA eligible health insurance plan).
Individual health insurance is much cheaper than group health insurance. Think of it kind of like; in individual health insurance the insurance company gets to pick and choose who they will extend coverage too. They choose those who are healthy and have the lowest risk to the company. Therefore, the rates are much lower than in a group health insurance plan where no matter who applies for coverage, whether healthy or unhealthy, they are offered coverage (and of course everyone that is unhealthy wants health insurance – this principle is called the law of adverse selection if any super technical people just love knowing the actual name of insurance principles). A good way to think about it is if you are healthy and on a group health insurance plan then you are in a sense subsidizing the cost of all of the unhealthy people on the group health insurance plan.
Getting quotes for individual health insurance is very easy. Obtaining group health insurance quotes is sometimes a long drawn out process of filling out a census form with all of the employee information and other administrative time consuming tasks. With the ease of the Internet and the simplicity of individual health insurance rates all it takes is a few moments to enter in basic health insurance information and you can view individual health insurance rate quotes online.
Abel Craig writes articles on diffrent topics. To know more about exposed acne treatment, exposed acne products visit http://www.squidoo.com/exposedskincare/
In this video we take a look at how insurance companies will rate an individual plan and how they rate group plans. They way that they rate the plans directly influence what the plan is going to cost for you. This video looks at how an individual plan can actually save you money because of the ratings from the insurance companies. It also gives an inside look at what types of information influence the insurance’s rating on your plan. If you don’t know what kind of factors influence the cost of your insurance plan, then watch this video to find our more. For more information regarding health insurance, go to myinsuranceexpert.com
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Being an employer in Texas and looking for group health insurance plans for the employers is a stiff job. Sometimes, it takes hours to decide what types of plans should be offered to the employees, which could offer desired level of coverage to the employees and would be affordable for the business owner as well. Below are some activities that the business owner needs to do:
You need to install a health insurance plan and communicating it to the employees so that they can choose it
You need to assist the addition or deletion of employees in the plan
If the employees need to make claims, you need to assist in that or perhaps coordinate
If possible, you need to provide on-line access to company’s entire insurance plans for easy access and monitoring
If the employees need to know about COBRA, you need to assist in that also
The options of providing health insurance to your employees could be explored with 19 carriers in Texas. As an employer, you need to know that major share of premium will be paid by you. For employees, this provision makes group health insurance as one of the most affordable health insurance options.
Consumer-Directed Group Health Plans
These plans have a consumer-directed approach. Examples of these types of plans would be:
Health Savings Account (HSA), which are like a bank account where an employee and the employer contribute tax-free income. This income, in future, can be used for almost any health-related cost.
Cafeteria Plans differ from HSA because in these plans the employees decide where their benefit dollars go. Employees may choose from medical, dental, vision, disability, accident, and term life insurance. Moreover, unlike HSA plans, contributed money cant be rolled over for the next year.
Comprehensive Group Health Plans
These plans offer more comprehensive options to the employees. Some examples would be:
Health Maintenance Organization (HMO), which remains one of the most affordable group health insurance options.
Preferred Provider Organization (PPO), which provides comprehensive health benefits from an extensive network of care providers.
Point of Service group plan (POS), which can be visualized as a combination of the HMO and PPO, and offers comprehensive health insurance options.
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Being an employer in Texas and looking for group health insurance plans for the employers is a stiff job. Sometimes, it takes hours to decide what types of plans should be offered to the employees, which could offer desired level of coverage to the employees and would be affordable for the business owner as well. Below are some activities that the business owner needs to do:
• You need to install a health insurance plan and communicating it to the employees so that they can choose it
• You need to assist the addition or deletion of employees in the plan
• If the employees need to make claims, you need to assist in that or perhaps coordinate
• If possible, you need to provide on-line access to company’s entire insurance plans for easy access and monitoring
• If the employees need to know about COBRA, you need to assist in that also
The options of providing health insurance to your employees could be explored with 19 carriers in Texas.
As an employer, you need to know that major share of premium will be paid by you. For employees, this provision makes group health insurance as one of the most affordable health insurance options.
Consumer-Directed Group Health Plans
These plans have a consumer-directed approach. Examples of these types of plans would be:
• Health Savings Account (HSA), which are like a bank account where an employee and the employer contribute tax-free income. This income, in future, can be used for almost any health-related cost.
• Cafeteria Plans differ from HSA because in these plans the employees decide where their benefit dollars go. Employees may choose from medical, dental, vision, disability, accident, and term life insurance. Moreover, unlike HSA plans, contributed money can’t be rolled over for the next year.
Comprehensive Group Health Plans
These plans offer more comprehensive options to the employees. Some examples would be:
• Health Maintenance Organization (HMO), which remains one of the most affordable group health insurance options.
• Preferred Provider Organization (PPO), which provides comprehensive health benefits from an extensive network of care providers.
• Point of Service group plan (POS), which can be visualized as a combination of the HMO and PPO, and offers comprehensive health insurance options.
Article by Daniel Irwin
This past September (2006), America’s Health Insurance Plans (AHIP) Center for Policy and Research published a survey about the state of small group health insurance in the U.S. as of January 2006. The study was very comprehensive with many interesting results. Of the many findings, this article will touch on five that are most likely to shed some light on this subject for those in the small group health insurance market.
First, of the 650,000 small groups surveyed, it was found that for small group plans, premiums decreased as group size increased. On average, companies with between 26 and 50 employees paid about 13% less for single coverage than companies with 10 or fewer employees.
For those familiar with health insurance in general, this disparity probably does not come as a surprise. As group size increases, underwriters are able to spread risk more effectively. So, unfortunately, if you are looking for small group health insurance with say 10 employees, be prepared to pay more per employee than if you had say 30 employees.
Second, the amount of cost sharing by the employee typically is higher with small group health insurance plans. The average deductible for small groups (50 or fewer employees) was 9 while a survey by The Kaiser Family Foundation and Health Research and Educational Trust showed an average deductible of 9 for mostly medium size companies (up to 199 employees), a nearly 45% difference.
This disparity is most likely related to the higher cost for small group health insurance. Couple this with the fact that small firms may not have the resources of their larger counterparts, and you can more clearly understand this higher level of cost sharing for small group employee plans.
Third, among the companies surveyed with small group coverage, PPO plans enjoyed the most popularity. Fifty-seven per cent of employees with small group coverage chose a PPO plan, followed by HMO coverage with 39%. It’s interesting to note that the oldest type of health insurance, indemnity health insurance, was barely a blip in the survey with less than 0.5%.
The recent popularity of PPO’s is reflective of the changes in the health insurance market, changes brought on mostly by spiraling costs. Indeed, PPO’s allow for the cost savings of an HMO, with the freedom to go out of your network if necessary and still have coverage, albeit at a reduced rate.
Fourth, just over 10% of small group employees had a choice of two or more insurance plans. This number seemed low until it was viewed in light of the popularity of PPO plans. That is, one PPO plan is more likely to offer coverage that addresses the needs of a larger number of individuals.
More significantly, perhaps, is the fact that more than 80% of the small groups surveyed had 10 or fewer employees. With such small groups to begin with, it would be very difficult to offer affordable group health insurance to any subset of such groups.
Fifth and last, is an issue that is mentioned in the survey results but was not a finding of the survey. That is, while small group health insurance is mostly regulated by the states, it is federal law that requires small group health insurance be offered as “guaranteed issue”. This means that small businesses cannot be denied coverage due the health problems of its employees or dependents. However, even though the health status of a company’s employees and dependents cannot be used to deny coverage, it can be used to determine rates. This varies by state, but will typically result in higher premiums.
The small group health insurance market can be a frustrating place for many. By gaining a greater understanding of the current state of this market, one can approach the subject in a more realistic manner. For those in the small group health insurance market, there are many factors to consider that can affect cost. These include, but are not limited to, the size of your small group, the state in which the company is located, and the level of benefits offered to employees.
Jonathon James has been working in the health industry for nearly twenty years. To view additional articles and resources related to small group health insurance plans, please visit LearningAboutHealthInsurance.com
www.TopPickLeads.com Group Health Insurance Leads? We Reviewed The Top Online Providers! Visit us today to find out who we chose as our Top Pick for Group Health Insurance Leads!
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As an employer or a participant you might be leaving money on the table by not properly taking advantage of certain features and benefits of your company’s health insurance. As a licensed Consultant and Group Benefits Brokerage company, with clients across the country, we are successful in reducing group benefit expenses because of our experience and our intimate knowledge of the factors used in determining pricing. This top 10 list should be helpful in increasing your insurance knowledge, maximizing your plan benefits and possibly reducing your company’s expenses.
For most companies, group benefit plans, specifically medical benefits, are among the highest non-producing company expenses. Unlike other expenses, medical benefits hits home since it affects our employees and our families personally. Therefore, it is of paramount concern that the CFO and Director of Human Resources take into consideration the needs of their employees, the needs of their employees’ families, pricing, and specific benefits being offered.
The ability for an employee or an employee’s family member to use a favorite physician such as a Pediatrician or an OB/GYN is often affected by this decision. The ability for employees and their families to use specialized treatment centers in the event of a catastrophic medical situation also lies in the balance of the Health Benefits decision. Quality and access to medical care varies from insurance carrier to insurance carrier.
The primary purpose of Group Benefits as a whole as it relates to employers is to attract and retain employees. It goes without saying that the broader the benefits, the easier it would be to attract and retain a higher quality workforce.
As a reciprocal, industries that utilize high turn-over positions with minimum-wage employees may not necessarily choose to utilize the highest quality insurance policies to attract and retain employees. Employee pools may be abundant and the bottom-line total expenses may be more important than the quality and level of care offered.
With that said, let us share with you some money-saving ideas and under-utilized features of your medical benefits. Keep in mind that some items may relate to your current coverage while others suggest a change in coverage or a change in features of your plans.
The following represents our list of the top 10 frequently made mistakes as it relates to Group Health Insurance. This list is in no particular order. Each item may or may not apply to your current situation.
To use a few cliché’s, “a stitch in time saves nine” or “prevention is the best medicine”, or “kill the monster while it is tiny.” I am not sure if the last one is a main-stream cliché but it does hammer home the point that prevention is often the best medicine. Early detection is the second best course of treatment. Many doctors argue that colon cancer is extremely treatable if it is caught in the earliest stages. If the cancer is not detected early there is a risk of the cancer getting more aggressive and spreading through the body. Every person should take the time to get regular exams. Every person should be aware of key medical indicators such as weight, blood pressure, and cholesterol levels. As a person gets to certain recommended ages, mammograms and other early detection tests should be done regularly. Just because you never went for a cholesterol check does not mean your cholesterol levels are zero. That is as foolish as driving around in an automobile without a gas gauge and assuming you don’t need to put gas in it since there is no indication of the level. The life you save with early detection could be your own or someone who you love.
Depending on the size of your group and which state your business is located in, early detection means fewer large insurance claims which translates into lower premiums for your company.
Many times, when you think of medical benefits you only think about doctor visits and drug plans. Often, employers and employees do not realize that their insurance carrier might also include services known as “Value Added Benefits”.
Health Insurance Carriers offer these Value Added Services to encourage healthy lifestyles. Healthy lifestyles would yield healthy employees which keeps insurance claims down.
It is important to understand your value added benefits for several reasons. First you, your family, and the employees you work with can benefit from these services. Second, your management or human resources department might come off as heroes just by telling employees about these value added benefits. The benefits are already included so you might as well tell people about them.
– some carriers have pre-negotiated discounts for vision care such as eye exams and eyeglasses.
– Certain carriers provide discounts or reimbursements for nutritional supplements. Supplementation might keep employees healthier and prevent certain diseases. Some employees are often already paying out-of-pocket for supplements so any discounts become bottom-line savings for the employee.
– Employees may be entitled to discounts on programs that relate to quitting smoking. Without going into a lecture as it relates to the dangers of smoking, let’s just say that when an employee is ready to quit, it is easier to do it with the help of professional programs. In the event that the Surgeon General is right about the dangers of smoking, healthier employees are happier and more reliable as an employee. This could also avoid future hospital visits and catastrophic treatments as well as delay premature death.
– Employees may take advantage of weight management programs. In some cases employees might already be using well known programs such as Weight Watchers™ or Jenny Craig™. Many scientific medical studies directly relate disease and health risk to an individual’s weight. Once again, a healthy employee calls in sick less often, is more productive, and on a selfish side, is likely to minimize the number of claims against your Insurance Policy. Certain company sizes in certain states may be rated and premiums are charged based on the claims filed against the insurance carrier.
– Discounts and reimbursements may be available for health club membership.
– Certain hearing centers may have pre-negotiated discounts with your insurance carrier.
– Safety equipment such as bicycle helmets may be available at a discount with specific insurance companies and retailers. Certain states mandate that children under a specified age are required to wear a helmet while riding bicycles, skateboarding, or roller skating. Even if helmets are not mandated, it is alarming how many serious injuries might have been prevented with the proper head protection. If you need or want a helmet anyway, you might as well get a discount on it.
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– Various retailers may have a pre-negotiated incentive worked out with your insurance company such as baby stores or household goods. This is good for the store from a marketing prospective and it is good for the consumer to get a discount.
– Security companies my provide discount services for your home protection and safety additions.
– Different services may exist for stress management and alcohol rehabilitation and treatment programs.
– Certain carriers offer additional discounts for mail order prescriptions. This is especially useful for drugs prescribed for the long-term such as heart medicine or cholesterol drugs. You know you need it any way so you might as well stock up by mail.
Different Insurance professionals have different experiences and abilities. Some Brokers are only Brokers while others are also Licensed Insurance Consultants. Some Brokers specialize in Property and Casualty or Life Insurance while others specialize in Group Health. If you are concerned with your Health Insurance rates and services, perhaps a specialist is what your company really needs.
Speaking as an insurance professional, we of all people, respect and appreciate client loyalty based on past service and existing relationships. On the other hand, how do you really know that you have the most appropriate policy and features if you do not get a second opinion from a different Broker or Consultant? If the relationship with your Broker is that solid, it would not be difficult for your Broker to keep your business. If your Broker’s skills are not current and sharp as it relates to your company, his/her complacency might be costing your company tens of thousands, if not hundreds of thousands, of dollars.
Oftentimes, an insurance professional might become complacent with existing clients. This may be due to increased workload, understaffing, or the fact that they are too busy finding new clients. They may not be focusing on your bottom line.
A second opinion introduces a fresh perspective regarding your company’s health insurance needs and options. It keeps your broker honest and reminds them that they need to continue to service and provide creative solutions if they wish to keep your business.
Make sure the carrier alternatives are of “like kind and quality”. That simply means they are an apples-to-apples comparison.
Mix it up a little. Find out what the increase (or decrease) in premiums might be if you increase (or decrease) the co-pay, deductibles, in-network deductibles, and co-insurance. Look at different options with the drug plan as well.
Sometimes it pays to self-insure a portion in order to reduce premiums. Look at the total exposure, have your broker figure out worst cases scenarios, and contemplate the probability that the scenario could come true. This dovetails with mistakes #4, #5, and #6 coming up.
Very often, companies only look at the monthly premiums associated with their healthcare coverage. This is not the only variable when it comes to insurance rates. It is important to look at the total picture which includes:
a. Co-pay amounts
b. In-Network and Out-of-Network Deductibles
c. In-Network and Out-of-Network Co-Insurance Levels
d. In-Network and Out-of-Network out-of-pocket expenses
e. Out-Of-Network Reasonable and customary reimbursement levels
f. Gated or Non-Gated
g. Drug coverage co-pays, co-insurance and deductibles
h. Disease Management and Wellness Programs
i. Employer/Employee Contributions
j. Network Accessibility
k. Disruption Analysis
l. Monthly Premiums
m. Maximum Exposure
n. Maximum Benefits
o. Tax Treatment (See #9)
p. Quality of Coverage
l. Introduced deductibles on drugs
m. Generic and non-formulary drug discounts
Each of the above can be a topic unto itself. We can offer a free consultation to look at your coverage and suggest ways to maximize cost savings and improvements. Please see the “About the Author” section at the bottom of this article for more details.
If you pay 100%, by law, employees cannot “waive out” of the insurance plan. Participation must be 100%. By paying less than 100% of the benefits you are able to “create consideration”. This gives you flexibility.
What is so bad about having to take advantage of benefits if you are paying all of it? The fact is, certain employees would not be able to use a spouse’s insurance plan if they had to use yours. The spouse might offer better quality coverage with more options and better quality doctors.
Do you really want to have to pay for everyone’s insurance if they do not want insurance or prefer to waive coverage and go on their spouse’s plan? That means paying higher expenses for something that will likely never get used by certain people.
Depending on your circumstances, such as what state that you do business in, you may or may not benefit by being classified as a small group or as a large group. By simply classifying clients in the most appropriate group size we have saved clients thousands of dollars.
Generally speaking, small groups are considered to be groups consisting of between 2 and 50 full time eligible employees and large groups are considered to be groups consisting of 51+ full-time eligible employees. A full-time eligible employee is not the same as an employee that may be covered under the benefits. For example, a group can have 55 employees, with 40 employees on the group health plan, and be classified as a large group.
Depending on your employee population it could be either advantageous or disadvantageous to be considered a 2-50 sized group. Read #6 of this list for more information.
In certain situations some companies have common ownership with other companies. Depending upon the percentage of ownership, in certain cases it makes sense to insure the companies separately, while in other cases it might pay to combine the employees and consider it a larger group.
Similar to #5 in classifying the group size, money can also be saved by having an overall understanding of the demographics that makes up your group. Typically, younger people are healthier and can often afford to take certain medical risks that older employees cannot afford to take. If you realize that your company is mostly made up of younger people who are healthy, it might be a good idea to utilize a high-deductible tax qualified plan with a Health Savings Account (HSA). A high deductible plan is essentially betting on the fact that claims will be minimal throughout the year, so why not pay the lowest premiums available, and at the same time accumulate cash in the Health Savings Account (HSA)?
A high deductible plan does not necessarily mean that you intend to pass on the increased deductibles to your employees. Your company can be willing to pay the deductible (or a portion) through a Health Reimbursement Account (HRA).
Not Offering Different Plans for Different People
More recently than not, the market has been trending towards companies offering multiple insurance plan options. The company may provide a base contribution allowing the employees to choose between “a base”, “a buy-up”, or “an HSA plan”.
In addition, companies can offer a plan based upon employee classification. For example, “Class 1” employees can consist of executives and managers and “Class 2” employees may consist of all others.
The trick is to be competitive without giving away the shop. Typically, to generalize for a moment, law firms might offer the best insurance available for the money while assembly line workers might be given average benefits for manufacturing. But what is average and how do you find out what is standard and customary?
A “Benchmark Analysis” is a report that can be ordered to get statistics and trends about comparable companies in your industry, company size, and/or in your region. Although these reports often cost some money, the information provided could be valuable in attracting and retaining qualified employees without giving away all of the profits.
Even if you love your Broker, it is a mistake in not treating each renewal period as an opportunity to find out what policies or other insurance companies are more competitive or appropriate for your company. Each renewal period should be treated just like you are looking for insurance companies for the first time.
With our clients this step is invisible to them. We always look at the renewal numbers and compare them to other carriers or to other policies within the same carrier. Over the years it became obvious that the only constant in life is change. Based on the insurance company’s desire to increase or decrease market share, they often choose to increase or decrease their risk tolerance and policies. A renewal period is a great opportunity to make sure you have the right coverage for your circumstances.
Although we encounter this particular “money-waster” often, we are not an accounting firm and suggest that you speak with your tax advisor, accountant, or CPA before doing anything.
Typically speaking, health insurance premiums are tax deductible with pre-tax dollars, while co-pays, deductibles, co-insurance, and prescription co-pays are usually paid with after-tax dollars. It might be a good idea for your accountant to work with your broker to come up with a tax strategy that works well with your human resources and health benefits objectives.
Are the employees paying for their portion of the health insurance premium through the use of a “Section 125” premium only plan? This will allow employees to pay the health insurance premium on a pre-tax basis thereby reducing the employer payroll taxes.
You may want to consider offering a Flexible Savings Account (FSA). An FSA allows employees to pay for a portion of their un-reimbursed medical expenses on a tax-free basis.
We hear about it almost every day. Due to poor administration, employers neglect to advise the insurance carriers of newly terminated or newly eligible employees.
In many cases, the guidelines are rigid and clear. A simple mistake with administration may cause your company to either pay insurance on someone who is no longer with the company or it may open yourself up to liability. Had an employee been eligible for benefits, but somebody forgot to do the paperwork, your company could be liable for claims.
Liability of not setting out corporate notices
Notices may need to be communicated due to changes in coverage or policy changes. Once again, in many cases the burden of proof might be on you. If you do not notify employees of the changes you might be held accountable for the lack of notifications.
Last but not least, in many circumstances an employee has a legal right to be notified if they are eligible to participate in the COBRA insurance program post termination. COBRA is the Consolidated Omnibus Budget Reconciliation Act. This gives employees the right to continue health insurance given certain qualifications. By not properly notifying the employee, your company is in violation of federal law and can perhaps be held accountable for claims and medical expenses incurred by the employee. By properly notifying the employee, the liability lies in the hands of the employee and the insurance company if they choose to continue coverage.
It’s great that you made it this far into the article and that by itself gives you plenty of things to look at in deciding if you are making any of the above mistakes. In some cases you can change your behaviors midstream. For example, you can find out from your current carrier if there are any Value Added Benefits that you may not be aware of. You can also make sure that your company has an accurate list of employees who should be on the policy or need to be added.
Once again, Group Health Insurance is one of the largest non-producing expenses for most businesses. It is up to the business as well as their employees to maintain an active role with wellness, routine exams, and disease management programs. Insurance might be considered an expense, but when it comes down to it, health and lives are at risk.
DISCLAIMER: Information is intended as a general nature. Always consult a licensed professional before implementing anything.
Copyright© 2008 Economic Evaluation Group, Inc.
John R. Klimchak has been in the insurance field for over 20 years. He is a licensed Insurance Consultant and a Licensed Insurance Broker. Mr. Klimchak is also the President of Economic Evaluation Group, Inc. (www.eegroup.com), a firm specializing in Group Health benefits and other related services. For a free consultation call (516) 338-2800 and reference the “Top 10 Mistakes Article”.
Small Business Group Health Insurance Benefits Are you looking for small business group health insurance? Health insurance is very useful for our future. With health insurance you can save more money on health care plan. To get the best health insurance that will give you satisfactory of health coverage, you have to do health insurance comparison. There are various options and prices for affordable health plans. If you have small business and looking for affordable group health insurance, you can do a research on the internet. Many health insurance companies offer small business group health insurance free quotes. The benefits of purchase small business group health insurance are you can covers employers, employees and families. The employees cannot be declined due to the medical history as well. Get also premiums tax deductible for employers with small business group health insurance. If you want to retain only high-quality employees that can bring your business to the top level, you have to offer your employees good health insurance coverage options. With small business group health insurance, your workers will able to manage routine costs such as health care or preventive care or regular physical exams. You can choose the most suitable group health insurances from these options; traditional or fee for service (FFS), health maintenance organization (HMO), preferred provider organization (PPO), and point of service (POS). If you are a business owner, you can also take …
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If you enroll in an inexpensive group wellness insurance program, you will have entry to numerous benefits. Numerous people feel this statement refers only to the medical positive aspects that are the major goal of cost-effective team wellbeing insurance policy policies. Nevertheless, there are numerous other rewards to enrolling in an reasonably priced team health insurance policy strategy.
The first value added reward is peace of mind. If one particular of your dependents gets ill, it is extremely nice to be in a position to only fret about obtaining them entry to the very best accessible health-related care, as an alternative of possessing to take time out to get worried about how you will pay out for the healthcare care. Or even worse yet, having to choose whether to even seek health-related care or not primarily based on economic good reasons. With out reasonably priced group wellness insurance coverage, a healthcare emergency can outcome in mind-boggling bills that could sooner or later end up causing a household to file for personalized bankruptcysomething that occurs in the U.S. quite typically. At a difficult economic time, when so a lot of men and women are losing their homes, it is very essential to know that you are doing all you can to safeguard your finances, and your home so that you do not go into deep health-related debts. This peace of head can even support your recovery go faster simply because investigation reveals anxiety prospects to a slower recovery.
A second valuable benefit of cost-effective team wellness insurance policy programs is the quantity of information and educational supplies obtainable to members of an inexpensive team health insurance policy plan. On the companys world wide web site, you will have entry to pamphlets, brochure, video clips, etc. that can aid you learn about long-term illnesses, crucial wellness information, set fitness and excess weight targets, and other well being connected routines. There are a lot of affordable group well being insurance policy carriers that offer you concepts and applications to aid members quit smoking cigarettes or shed fat. There are some reasonably priced group health insurance carriers that aid members by reminding them of recommended screenings, scheduled appointments, proposed immunizations, and other useful providers.
A 3rd profit is the electronic file keeping that is maintained by several affordable team wellbeing insurance coverage carriers. You can entry a big element of your health-related document on-line, and maintain monitor of your healthcare providers. You can also verify on claims submission and statements payment. You can study the explanation of advantages sent out to your medical doctor and other health treatment companies. You may even be ready to spend your reasonably priced group wellness insurance premiums on the web. Numerous inexpensive team wellbeing insurance coverage carriers will also keep date on your doctor so you can compare or read reviews about your medical doctor in buy to feel far more confident in his or her services.
A fourth profit is that several affordable team well being insurance policy carriers provide an 800- amount, or a hotline to converse to a nurse or doctor when you have a health care problem that you would like support with, but it can not wait until finally an office environment go to. Often these questions are about no matter whether to go to an emergency clinic or not. Having a medical particular person accessible is yet another valuable support supplied by several reasonably priced group wellness insurance plan carriers, and is nevertheless yet another way they check out to support members sustain nutritious lives and prevent illness or injury.
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Tagged Costeffective, coverage, Insurance, Team, Wellbeing
