Employees are the heart of your business, so you want to take care of them by offering a group health insurance plan. How do you know which plan is right for you?
Health insurance requirements have changed rapidly in the past few decades, and it can be hard to keep track of the many group health insurance regulations and plan types. Luckily, with the help of an insurance agent, you can find the best options for your business size, status, and industry.
Depending on the state your business operates in, you may be required to provide health insurance once you hit a certain threshold of employees. Group health plan offerings can also differ based on the number of employees enrolled in the plan. With ever-changing individual health insurance mandates, it can be challenging to know what you are legally required to offer.
With group health insurance plans, employers share the cost of the insurance with their employees. As a business owner, you can decide the premium percentage you will cover for your team. There are two standard group health insurance plan options: HMOs and PPOs. These plans have different deductibles, premiums, and provider options.
With a health maintenance organization, employees must choose from a list of in-network primary care physicians to provide routine care. If they have a health condition that requires focused care, they need to be referred to a specialist by their primary care physician. Despite limiting provider options, HMOs simplify care because the primary care physician is the first point of contact for all health needs. And because of this, HMOs are a cost-effective option for both employers and employees.
If you want more flexibility out of your group health insurance plan, a PPO plan is for you. Employees can choose from a more expansive list of providers, and they don’t need a primary care physician to refer them to specialists. Additionally, employees covered under a PPO can choose to see an out-of-network provider. The insurance company will still cover a portion of the costs, unlike with an HMO plan. The downside of a PPO is the cost—this plan is more expensive than an HMO.
If you are considering the best group health insurance option for your employees, it is essential to consider deductibles. If you want to make sure your employees pay less out-of-pocket for their care, a low-deductible plan is ideal. However, with a low deductible comes a higher premium—both you and your employees will pay higher premiums for their coverage.
Conversely, you can choose a high-deductible option if you want to prioritize insurance costs for you and your employees. You will pay less per month for your group health plan, but doctor visits will cost your employees more. This plan is cheaper for employees with fewer health concerns because they will be responsible for fewer deductible payments. Therefore, you will want to consider your employees’ age and health when deciding on a deductible.
Choosing the right group health insurance plan can be challenging. With so many plan and deductible options, deciding what’s right for your employees can be overwhelming. Let our group health insurance experts at Southpoint guide you through the process and find the best insurance options to fit your company’s size and demographics.
Our team at Southpoint has decades of experience, which is why you can trust us to identify the best insurance companies and get competitive quotes for you to choose from. We work for you, not the insurance company, so we will prioritize finding the best group health plan for you. Contact us today to learn more.