It can be difficult to choose the right employee health insurance plan for you and your family. There are many factors to consider, yet many employees either reject the offer or spend little time selecting a plan.
In firms that offer healthcare, only 77% of workers who are eligible for insurance accept the offer. And, employees spend about 18 minutes enrolling and selecting a plan when the average consumer spends over four hours in selecting a phone plan. Health insurance plans have a greater impact in your life than a phone service does and should be selected after careful consideration.
To help you make the best decision for your situation, here are a few things to keep in mind when you’re on the search for how to choose employee health insurance.
Should I Use My Workplace Health Insurance?
If your employer offers health insurance, you may be wondering whether you should use it or purchase a plan on your own. The answer largely depends on your needs and the following criteria:
- The type of coverage
- The cost of premiums
- The network of doctors and hospitals
If you’re healthy and don’t have any preexisting medical conditions, you may be able to find an individual health insurance plan that costs less than your workplace plan. However, if you or a family member has a preexisting condition, you may be better off using your employer’s health insurance, as it is likely to provide better coverage for your needs.
When figuring out how to choose employee health insurance, another thing to consider is whether your family is eligible for coverage under your workplace plan. If they are, it may be more cost-effective to enroll them in your employer’s health insurance than to purchase a separate family health insurance plan.
Employee health care is typically cheaper because your workplace health insurance cannot exceed 9.61% of your income, so it has to be low-cost.
In contrast, if you decide not to use your workplace health insurance and instead purchase an individual health insurance plan, the cost will be entirely up to you. There is no limit to how much an individual health insurance plan can cost, so premiums could end up being much higher than they would be under a workplace health insurance plan.
Which Plan Is Best for Me?
Once you’ve decided whether to use your workplace health insurance or purchase an individual plan, you’ll need to choose a specific plan. There are four types of employee health insurance plans you could choose:
- Health Maintenance Organizations (HMOs)
- Preferred Provider Organizations (PPOs)
- High-Deductible Health Plans (HDHPs)
- Point-of-Service (POS) Plans
Health Maintenance Organizations (HMOs)
HMOs are the most common types of employee health insurance plans to choose from. HMOs typically have lower monthly premiums, but they also have more restrictions. For example, with an HMO, you’ll usually need to see a doctor who is in your plan’s network in order to have your insurance cover the cost of the visit.
Preferred Provider Organizations (PPOs)
PPOs are also a very common plan. They typically have higher monthly premiums than HMOs, but they also have fewer restrictions. With a PPO, you can see any doctor you want, and you’ll only pay a little more out of pocket if you see a doctor who is outside of your network.
High-Deductible Health Plans (HDHPs)
HDHPs also have lower monthly premiums than PPOs, but they come with a high deductible, which is the amount you have to pay for medical care before your insurance kicks in. For example, if your HDHP has a $1,000 deductible, you’ll have to pay the first $1,000 of any medical bills yourself. After you’ve met your deductible, your insurance will start covering a portion of the cost.
Point-of-Service (POS) Plans
POS plans are similar to HMO plans because it allows you to see out-of-network doctors, but you’ll pay more for those visits.
The Cost of Plans
Once you’ve decided which type of plan is best for you, you’ll need to compare the costs of different plans. The cost of a health insurance plan depends on the following factors:
- The deductible
- The coinsurance
- The copayments
- The out-of-pocket maximum
No matter which employee health insurance plan you choose, make sure you understand the terms and conditions before enrolling. That way, you’ll know what is and isn’t covered by your insurance.
Does My Workplace Offer a Wellness Program?
Some workplaces offer wellness programs as part of their employee benefits package. If your workplace offers a wellness program, it may be worth enrolling in, as it could help you save money on your health insurance premiums.
Wellness programs are designed to help employees live healthier lifestyles. They typically involve activities such as health screenings, fitness classes, and smoking cessation programs. Some wellness programs also offer rewards, such as discounts on health insurance premiums, for completing certain activities.
If your workplace doesn’t offer a wellness program, you may be able to find one through your health insurance company. Many health insurance companies offer wellness programs as part of their benefits packages.
What Happens if I Leave My Job?
If you leave your job, you’ll need to decide what to do with your health insurance. If you’re enrolled in a workplace health insurance plan, you’ll usually be able to continue your coverage for a period of time after you leave your job. This is called continuation coverage.
Continuation coverage typically lasts for 18 months, but it may be shorter or longer, depending on your state’s laws. If you’re enrolled in a health insurance plan through the Health Insurance Marketplace, you’ll be able to keep your coverage as long as you pay your premiums.
Invest in Employee Health Care with Bethany Insurance
When deciding how to choose employee health insurance, there are a lot of factors to consider. At Bethany Insurance, we can help you find the perfect health insurance plan for your needs.
Schedule a consultation with us today! We offer competitive benefits to your valued employees.
