Health insurance basics for employers

Health insurance is a must-have in today's society and it is one of the selling points companies use when they are trying to attract new employees. Finding the right type of health insurance coverage is difficult. There are hundreds of health insurance companies, plans, deductibles, co-payments, exclusions, limitations, and other things you need to consider when you are shopping for the right healthcare insurance for your company. Going through all the paperwork is intimidating; especially for someone that doesn't know what they are doing.

Employee health insurance costs over $7,900 per person and that cost is only expected to rise. If you have high-risk employees on your staff, those costs will only continue to rise. Here are a few health insurance plans to look at:
Health insurance basics for employers

Health Maintenance Organization
Health Maintenance Organizations (HMOs) are popular with employers and employees. The government has mandated that companies which employ more than 25 employees must offer an HMO plan. There are monthly fees the employee will need to pay with an HMO, but the co-payments are smaller and there usually aren't any deductions. HMOs are attractive for healthier employees that do not use their health insurance often.

HMO plans encourage people to come in for immunizations and well-visit exams. It will cover all routine check-ups, lab work, x-rays, immunizations, and minor illnesses. Companies have found that they lose less work time from their employees that have HMO plans because they do not visit the doctor as much. The downside to HMO plans for employees is that they are limited on the doctor they can go to. This may mean they need to receive approval from their regular doctor before they can go to a specialist and they can only go to a specialist that is covered. Even though it is a hassle, the costs are significantly lower than traditional health insurance costs. Employers often prefer HMO plans because the premiums are cheaper. Since employees do not use their insurance as much, they actually save money on employee health insurance.

Preferred-Provider Organization
Preferred-Provider Organizations (PPOs) are another common insurance type. PPOs work similar to an HMO except you do not pay in advance. With a PPO, you must attend the cooperating doctors and visit the in-network clinics and hospitals. You only pay for healthcare when you need it. As long as you go to doctors that are in-network, you will not be responsible for additional charges. The co-payments are normally lower when you do visit the doctor. If you have double-coverage, the PPO plan could pick up all of the additional costs you have left-over from your primary insurance provider.

Health Savings Accounts
Health savings accounts (HSAs) and Flexible spending accounts have become popular with several employers. The HSA or Flex-spending account allows the employer to set aside some money into the account before taxes. The money in the account can be used to pay for any medical expenses. The employee can contribute extra money to the account also. Since the HSA and Flex-spending accounts work similar to checking accounts, employees do not like to use the money often. They normally do not visit the doctor unless it is for a routine visit.

The flex-spending or HSA accounts are becoming more and more popular with employers and employers. This is partially because the money is placed into the account before taxes are taken out and the money is still tax-deductible every year. Employers will need to take a look at their health insurance costs and if they will actually save a decent amount of money when they switch to a HSA.

When you are looking for health insurance coverage for your company, be sure to shop around. It will take a lot for research and time to find the right company that offers good health insurance coverage, especially if you have a lot of high-risk employees.

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