Info About Insurance

Get Group Heath Insurance Coverage

With health insurance, you protect yourself and your family in case you need medical care that could be expensive. U.S. businesses spend hundreds of dollars on company health insurance. Employees usually rank company health insurance as the most important of all their benefits. In many cases the employer pays part or all of the cost, as group insurance is the least expensive. Group Health Insurance is available on a guarantee to issue basis in every state per health reform laws that are passed in 1996. It is worth taking time to make sure you make the right choice in choosing the right type of health insurance plan for your company. Advantage of traditional group medical insurance is the flexibility it provides to the employees. Most group medical insurance plans require costly deductibles.

First alternative to traditional group insurance is Health Maintenance Organizations. HMO premiums are the lowest of any type of group medical insurance. But they are least flexible type of health care plan, as they require members to choose a primary care physician who performs basic health checkups.

PPOs are quite similar to traditional group medical insurance policies, with the exception that there are two different levels of coverage depending on which providers you use. Doctors and hospitals agree to provide health care to PPO members at lower rates, which allow the PPO to reduce overall health care costs.

POS combine elements of both HMOs and PPOs. The cost involves deductibles and coinsurance, much like traditional fee-for-service plans. They are popular with some employees as they provide much of the cost savings of HMOs.

A Federal Law that may help you is the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985. The law requires that if you work for business of 20 or more employees and leave your job, you can continue to get health coverage for at least 18 months, but you will be charged a higher premium. You must meet certain conditions, such as payment schedules, to maintain coverage under COBRA.

Consumer-driven health plan is the new type of health plan that is rapidly gaining popularity.

Tips

• Watch out for hospital indemnity policies and dread disease polices, as they pay for each day you are in hospital.
• Make sure you do enough research to understand the requirements, before you decide to create your own health care plan.
• Contact your nearest office of the Pension and Welfare Benefits Administration
  of the Department of Labor. Check with your state insurance commissioner’s office.