Employee sponsored health plans

With the cost of health care on the rise Americans are trying hard to find something they can afford.Policy makers have been searching for years for some way to make health insurance affordable but still have come up short.As an employer however, you can offer your employees work sponsored health programs to help cut down the costs for family and individual family members.Let's take a closer look at some of the employee sponsored health plans available.

What is an employee sponsored health plan?
An employee sponsored health program is coverage that pays a portion of the total costs for a medical related expense or bill.Things that fall under this category would be doctor and hospital visits, prescriptions, and even extended stay hospital visits.The employer generally pays a portion of the premium (depending on what your job is will depend on what they pay), the insurance will cover most, and you will have to take care of what's left over.Employee sponsored health plans are usually offered as part of an employer benefit package.Some will have specific requirements that have to be met like working a certain number of hours a week, or having good health.There are however adjustments that most make for part time employees.

Different types of employee sponsored health plans
When it comes to choosing an employee sponsored health plan you have a few different options:
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• HMOs or Health Maintenance Organizations:HMOs are a type of managed health care system.HMOs don't merely provide financing for medical care, they actually deliver the treatment as well; doctors, hospitals, all participate in the arrangement of HMOs.When you join an HMO you choose a primary care physician who is your first contact for all your medical needs.You must consult with this physician before seeing any type of specialist.There are several advantages and disadvantages to HMOs.Some advantages are that they have low out of pocket costs, they focus on wellness and preventative care, and generally don't place limits on lifetime benefits.Some disadvantages are that it is more difficult to get specialized care and care from non-HMO providers is generally not covered.


• - PPOs or Preferred Provider Organizations:PPOs are similar to HMO plans in that they are also a managed healthcare system.A PPO is a group of doctors or hospitals that provide medical service to a specific group or association.It can be sponsored by an insurance company, or by one or more employers.The services provided are for policy holders, employees, or members of the sponsor at a discounted rate.Some advantages are you have a free choice of healthcare providers and out of pocket costs are generally limited.Disadvantages include less coverage for treatment provided by non-PPO physicians and there is much more paper work and expenses than HMOs.


• - POS or point of service programs:A POS plan is a type of managed healthcare system also that combines characteristics of the HMO and the PPO.You pay no deductible and will usually have a minimal co-payment when you use the healthcare provider network. If you go outside the network then your coverage functions more like a PPO.You will more than likely be subject to a deductible and your co-payment will be a good percentage of the physician's charges.Advantages to using POS programs are that they allow you to maximize your freedom of choice, there is minimal co-payment, no deductible, and out of pocket expenses are limited.Disadvantages may include large co-payments for out of network care, deductibles for out of network care, and tight controls to get specialized care.

Employee sponsored health plans have their advantages and their disadvantages for employees and employers.Right now as health care costs continue to increase, employee sponsored health plans provide families and individual members of families a great way to be covered for medical expenses.