Posted by: Admin
Posted on: Aug 22, 2022 at 3:01 pm
The vast majority of businesses offer health insurance benefits for qualifying employees through group health plans. Under a group plan setup, costs are shared by both employers and employees, allowing participants to receive crucial health insurance benefits at a fraction of the cost they would pay if they bought their coverage alone.
Still, group health benefits are not free to participating employees, and when your employer offers you benefits, you usually must pay something out of pocket for both your plan itself and any ensuing care. Here’s what to expect.
When an employer chooses to offer a group health plan as part of their benefits package, then they are the party that buys the plan from the carrier. They allow qualifying employees (usually, at least everyone who works for them full-time) to enroll as participants in the plan. The employees can also choose to enroll qualifying family members and dependents on the plans as well.
By providing health insurance, an employer ensures that employees can receive the health care they need, not just to treat illness but also to stay well in general. This is valuable to the business because healthy employees are the ones who often perform most optimally.
For employees, group plans have cost benefits as well. In the case of most plans, the employer pays a portion of the premium, while the employee pays the remainder. That often reduces the out-of-pocket cost to employees, and it allows them to get coverage for a cost that they might not be able to afford alone.
Group health plans do not equal free health care. Employees contribute a portion of their paychecks towards a plan’s premiums, first of all. Additionally, even once they have coverage, employees will share a portion of their health care costs. Usually, they must pay:
All plans vary in which cost sharing mechanisms apply to which services. Additionally, most plans will include a provider network, which outlines the physicians who accept that particular plan as a form of payment. As long as you see a provider within your network, you will pay the most optimized coverage for your costs.
With decades of experience specializing in employee benefits, the dedicated staff at Beckworth Beneficial is well-equipped to help your organization understand the importance of these offerings. We will use our extensive knowledge to explain your options, assess your needs and assemble an optimal portfolio. Visit our website or call 559-389-5837 to get started today.
NOTICE: This blog and website are for educational and informational use only and do not offer exhaustive legal, insurance, or tax advice. No broker-client relationship is established by your use of the site. For professional advice, consult a licensed expert in your state.