Investing in Group Health Insurance Coverage – Advantages and Disadvantages
Any kind of business either large or small can benefit from healthy employees. Employees are a company’s greatest investment, so it is vital to invest in their health insurance policy. This also helps your business to –
- Retain and recruit quality employees
- Enhance employee satisfaction
- Increase productivity
- Reduce absenteeism
Employees with poor health, cost you a lot. Group health insurance coverage offered to the employees at reduced cost can help them to combat the escalating healthcare cost.
Common services roofed by group health insurance coverage
- Doctor visits
- Ambulance
- Hospitalization
- Laboratory tests
- Dentist visits
- Prescribed medication benefits
Advantages of group health insurance
- Employer’s sponsor – Basically, employer must pay 50% of the employee premium. Thus, an employee gets a rich health policy at reduced premium rates in comparison to individual health policy. However, adding your dependents to this plan may be too expensive.
- No need for physical examination – In many states, group health insurance coverage can be issued to people with pre-existing health conditions. Your family member not eligible for an individual health plan can benefit, but with an exclusionary rider.
- Maternity coverage in group plans – Adding maternity rider in an individual health policy it tends to be costly, restrictive and provides less value in comparison to what you attain via group health policy.
Disadvantages of group health insurance
- Not portable – Employer supported group health coverage is not transferable, if you discontinue working or change job. You can probably have continuation rights benefited through COBRA, which are expensive with limited term.
Ultimately, you have to find another employment opportunity with group health benefits or invest in an individual health policy or join Government health insurance plan. Remember not to remain uninsured because your risk getting into grave financial jeopardy due to medical expenses/hospitalization costs.
- Rising age, rising premium – In large groups, the average age begin to creep up as well as the premiums. It is true that larger the group, bigger the risk pool. Sharing risk among large group results in low premium than individual health sector. However, age can cause havoc because lots of health needs begin to exceed those with no or little medical needs, but have to suffer the ever-increasing premiums.
Your preference
It doesn’t matter if you select an employer sponsored group plan or invest in an individual policy on your own, but ensure that the plan covers your needs. To meet your unique needs and budget take help from the experts at Taylor Benefits Insurance agency.
Group plans can seem alluring to people with high medical expense. They are guaranteed issue, so they accept everyone but with high premiums. Alternatively, individual health policy is medically underwritten. They can reject approval to people with health issues. This is the main difference between individual and group insurance policy.
It is wise to invest in any kind of health insurance policy. Harvard University research reported that 50% of bankruptcy filings were due to medical expenses. In US, every 30 seconds someone files bankruptcy owing to grave health issues and medical expenses. Consider the health insurance options with the help of a reliable health insurance advisor and avoid such circumstances.
Author’s Bio:
Peter Dav is an expert on finance, and he has been working with one of the top names in the business, Peter Benefits Insurance agency. If you are looking for best deals on health insurance for groups, then please feel free to check out their website right away.
Category: Health, Medical Insurance
