Overview
Health insurance is one of the most important
benefits that a company can offer its employees. Health insurance refers
to any insurance coverage that is designed to cover medical expenses.
When comparing job positions, this is one area where you will want to
pay special attention. According to the recent statistics, the health
care costs are skyrocketing. However, Americans cannot afford to be
without coverage.How it Works
There are three main types of insurance plans available today including service, health maintenance organizations, and preferred provider organizations.The oldest known health insurance is the fee for service. This plan has largely been phased out but may occasionally be available. Under this program, subscribers to the plan would have to pay out of pocket for health care costs. The deductible amount that you have to pay before the insurance will cover anything is quite high. After you pay the deductible, the insurance company generally would cover 80% of the cost, leaving 20% to be covered out of pocket by the insured. When health care insurances began to gain importance, many insurance companies and employers abandoned this type of plan. Now, PPOs (Preferred Provider Organizations) and HMOs (Health Maintenance Organizations) are very common and PSPs (Point of Service Plans) are also being utilized.
Preferred provider organizations contract with a network of health care providers to bring you the lowest costs. Generally, you pay out of pocket payments called co-pays at the time the service is rendered. In this arrangement, fees to consult a contracted doctor who is included as in-network provider are less than what you pay for an out-of-network doctor who is not under contract. The contracts supposedly provide for standards of care to be met as well as trying to control costs. This program is a variation of the health maintenance organization.
Health maintenance organizations require you to sign up for a primary care physician. This doctor will control your entire healthcare program. Referrals to specialists must be obtained through your primary care doctor. This program has the least expensive co-pays and is the most restrictive.
Benefits
Health insurance is an expensive benefit to offer employees. So, some companies may want the employees to work in the company for a specified period of time before they become eligible for the benefits of health insurance. Apart from helping you pay full or part of your medical bills, they also give you a feel of relief so that you can have a piece of mind. It removes all your worries about any unforeseen medical bills.The health insurance covers not only the medical expenses of the employee but also their family members, in some cases. If you have a health insurance, you can also get some amount of tax exempted.
Costs
The premium for the insurance has increased over time due to high medical care costs. Employees are increasingly being forced to pay part or sometimes all of the cost of their plans.There are always limits, exclusions, and restrictions on health insurance. These depend on the insurance company and the type of plan your company offers. For more information, you can contact your human resources department on the specifics and costs of the plan(s) offered through your company.