Help
keep your employees by providing
group health insurance benefits
 Providing
health care benefits to your employees is a strategic business decision
and one that can help ensure your retention of quality employees.
Even if the law in your state does not require that you offer health
care benefits to your employees, in today's competitive climate,
doing so will help attract new employees as well as helping you
retain current employees. In addition to having an edge over the
competition by offering group health insurance, you may even find
that you qualify for certain tax benefits.
You may be self-employed
with a small business, but as long as there are two or more employees
within your organization, you are most likely eligible to apply
for group insurance. Today, there are a number of options for employers
who wish to offer health care benefits to their employees. As with
individual plans, employers can offer HMO, PPO, or fee-for-service
plans. The rates are based on demographics which include, age, gender,
and other factors.
HMO's (Health
Maintenance Organizations) require an insured to have a
Primary Care physician (PCP), known as a Gatekeeper, who makes referrals
to specialists as deemed necessary. The insured must utilize doctors
within a network. A flat co-pay ($10 or $20) is required for most
doctor visits and in many instances, no deductible is required.
PPO's (Preferred
Provider Organizations) are a blend of traditional insurance
and HMO. PPO plans are typically more expensive than HMO's and require
the insured to see physicians within the network, however, a specialist
can be seen without a referral from a PCP. If the insured sees a
physician outside of the network, he or she will have to pay higher
co-pays or in some instances, the care may not be covered at all.
Generally, PPO's provide the most competitive group premium rates.
Traditional Fee
for Service is one of the least affordable forms of health
care coverage, and offers fewer "well-care" services compared
to "managed care" plans. The upside is that it has the
most flexibility when it comes to choice of doctor and treatment
facilities.
When shopping for group
coverage, it is important to find a strong company that can meet
all of your needs. Often times a small business owner will choose
a cheap, "off-the-shelf" health care plan as a matter
of economy. However, some of these plans may include contingencies
that can negatively impact the type of care received. Providing
health care coverage to your employees is an "investment,"
not just another "expense."
Following are some tips
to help make your group health insurance shopping easier:
- Is the insurer solvent?
Be sure to check the insurer's financial ratings with:
- Check
to verify the company's and agent's licenses.
- How old is the company
and how long has it been marketing health insurance?
- What is the company's
track record on rate increases? While you can expect rates to
go up, they should not be increasing irresponsibly.
- How quickly are claims
processed? Typically, claims should be paid within 30 to 90 days.
- Does the company
offer plan choices to your employees such as cafeteria plans,
HSA plans, family plans, etc.
- Will you have a company
agent or representative assigned to you who can quickly resolve
any issues that may arise?
- Will prior medical
condition existence criteria or waiting periods be applied?
Group health insurance
can be a very powerful incentive to attract quality employees. The
payoff for employers is increased productivity and workplace morale,
which tends to lead to increased business profits.
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