Whether it is routine or unexpected, having to visit a clinic or see a doctor can be a financial burden. Medical bills can be very expensive, and the rise in healthcare costs is not only a problem for individuals, but also for many businesses that prioritize their employees’ health benefits. In fact, these unsustainable costs, and the inflexible nature of health insurance, have led many organizations to the decision to drop healthcare benefits altogether, which, clearly, is not to the benefit of anyone.
Fortunately, there are many more dental and health options today for businesses to choose from, and there are actually some excellent options if the right research is conducted.
To help all the business owners out there provide their employees with the best possible insurance, here are some top dental and health options you can choose from.
1. High-Deductible Health Plans
Nowadays, high-deductible health plans (HDHPs) are the most frequently offered group health policy – and for good reasons. In a nutshell, they reduce the overall healthcare costs by encouraging individuals to be more conscious of their medical expenses – in combination with the higher minimum deductible (as specified in the contract), making health coverage more affordable.
Overall, this brings the most benefits when it comes to serious health emergencies as well as other tax advantages – but it does not mean that flaws do not exist. HDHPs cover less than other types of healthcare policies so customers could be left without coverage for certain issues.
2. Group Healthcare Plans
To overcome the coverage issue, many businesses are turning to group coverage, with which employees are offered a monthly allowance of tax-free money along with a policy that covers all a business’s personnel as one group. The health insurance experts from GroupEnroll.ca explain that this lowers the risk for the insurance company, so the cost of the plan is far lower. The fact that employees can cover copays, deductibles, and prescription drugs using the group coverage means that their medical bills will be significantly reduced; whilst employers can also save a substantial amount of money as this policy typically comes with tax-free benefits.
Businesses can even structure their own employees’ eligibility requirements based on the group policy to make everything more organized. In this sense, group healthcare coverage plays an important role in helping organizations attract new talent and create a better working environment for everybody.
3. Traditional Group Health Insurance
The most common form of group coverage is a group health insurance plan, where a business provides healthcare coverage to its employees and possibly their dependents (if any). With this option, the company has the responsibility to pay a fixed premium initially – though a portion of this premium expense may be passed on to its employees. With that, the employees are liable for the copay and deductible amount related to whatever services they need.
This type of healthcare option is commonly purchased through an insurance broker or the Business Health Options marketplaces. Most employees are already somewhat familiar with how the policy works, meaning that traditional group health insurance is usually the chosen option for most businesses. However, the easy-to-obtain and use nature of this method typically come with premium prices, which can be a challenge, especially for small businesses.
4. Self-Funded Insurance
Self-funded insurance is the option of choice for businesses that want to avoid the premiums and restrictions of group health insurance. With this type of policy, the organization is completely in charge and undertakes the financial risks for providing healthcare benefits to its employees. They do that by paying for each staff out-of-pocket claim as it arises rather than paying a fixed premium to an insurance company and agreeing to the benefits, terms, and conditions that the insurer brings to the table.
To manage the process effectively:
- The terms of eligibility and covered benefits have to be outlined in the documents;
- A trust fund (contributed by the business and its employees) is set to store money and pay for those claims;
- A stop-loss policy is put in place to limit the potential risks that can harm the organization.
However, the risk of this policy is pretty clear – a good management and forecasting system has to be set up for it to work; otherwise, the company can go out of business at any moment if the number of claims is larger than expected.
Dropping the health benefits of employees is definitely a losing strategy for any business, especially today when organizations are in a competitive war for talent in which health benefits are a vital element to success. Therefore, it is essential for companies to know their options and provide their staff with a great healthcare plan to create a great working environment.