Group Health Insurance
is necessary to attract and keep good employees. While employers may
not like the cost of group health, they should be aware of the benefits
to the company and overall morale. There may be things you as an
employer can do to alleviate some of this costly pain. Also, all Group
Health companies and insurance agents that offer them are not created
equal.
The cost of this health insurance
versus the need for solid employees should be weighed. There a
perception that many in this country that employees will take a cut in
pay if they were to be guaranteed a group health plan.
There is a simple explanation for this reasoning. People know they will
have to go the doctor. Women need to have mammograms and pap smears,
the children need their shots and physicals, and men need their
prostrate examined, people realize these services cost money. Employees
often would prefer that you take money out their check for group health
then for them to write a check each month for it.
Get up to Five Free Group Health Insurance Quotes
It is the job of to keep your group health
cost to a minimum. If you already have a group health plan, you can
raise the deductible to discourage overuse of coverage by your
employees. However a dramatic raising of group health deductible or
co-payment may cause some rumbling among your employees. Yet it is t is a
good idea to start with a lower deductible, so you can absorb rate
increases. (Your group health rates will go up) Also know beforehand
what networks are in your area, and what health networks most of your
employees' doctors belong to.
It is very important to review and understand your group health quotes
that you will receive. Any insurance agent or broker that provides you
with initial group health quotes over the phone, without having your
employees fill out any applications, is doing you a disservice. Unless
the agent is the Great Houdini, no one in our field can give you a firm,
group health quote without a thorough underwriting. Group Health
Insurance is too complicated to be taken this casual. Remember, look for
an agent that gets to know your particular situation, understand your
needs, and has the group health benefits that meet your expectations.
Is going with the biggest named group health
insurance companies, the best choice? Choosing the "big name" companies
over less known, group health insurance companies with reputable
ratings, may not be in your employees and yours' best interest. All
group health plan are not designed the same. If XYZ, group health
companies pays 80% for a mammogram and ABC, group health company pays
all, could it make sense to you to check the other benefits of the
health plan?
Employers realize that they must offer group
health to attract and keep quality employees. There are a few hints that
can keep group health costs down. It is important to realize that an
initial group health quote, with no underwriting is worthless and
probably should never be used. The listings of the benefits of the group
health plan would be meaningful. While big companies have good
"branding," do not overlook smaller group health companies with good
ratings.
Other Group Health Tips
1. Realize that you will be required as an
employer to contribute as least 25% of the premiums for the group health
insurance. (I never seen an group health carrier ask for less.)
2. Also realize that many group health
carriers want at least 60- 70% participation of eligible employees to
take the group health insurance or they will not underwrite the group.
3. Before you bind coverage with an agent or
broker, find out who will process any claim paperwork and who your
employees call about a claim.
4. Decide whether you will want current employees to keep their group health insurance when they retire.
5. Review and ask questions about such terms
as group health deductibles, coinsurance, and maximum limits if you are
not familiar with them.
