Are you getting ready to secure a group insurance plan for your company's employees? Here are a few important questions to ask when choosing a plan to invest in:
What Is the Minimum Participation Rate?
Many group health insurance providers require that a certain percentage of your workforce must enroll in the insurance plan you invest in before the insurance will become active. For example, one company may require that at least 70% of your employees enroll, while another might require that only 50% of them participate. Talk to your employees to find out how many of them plan to participate in group insurance coverage so that you can determine whether your business will be able to meet the participation requirements of any given plan you consider investing in.
How Are Premiums Determined?
It is also a good idea to find out how premiums will be determined for your employees when choosing a group insurance plan for them to participate in. Will premiums be unique to each employee based on things like preexisting conditions and length of employment? Will premiums depend on the number of employees that want to participate in the insurance program? Could premiums change as employee life situations change, or can everyone count on the same premiums as time goes on?
Are Families Eligible for Coverage?
Some group insurance plans are designed for employees and their families, while others are just for employees. Chances are that at least some of your employees will want to obtain coverage for their loved ones at home, so it is important to find out exactly who will be eligible for coverage once an employee signs up so that you can ensure that they know what to expect when deciding whether to participate in the insurance program. You should be able to provide your employees with a complete list of eligible family members to ensure that there are no disappointments.
What Kind of Plan Is Offered?
There are two common types of group insurance plans that the insurance company you're working with may offer. The first is an HMO plan, which usually offers low premiums but requires patients to work with only doctors that are part of the HMO network. This means that your employees won't be able to choose any doctor they want to work with. If their chosen doctor is not part of the HMO network, they won't be able to see them.
The second option is a PPO plan, which will allow your employees to see whatever doctors and specialists they want but at the expense of higher premiums. You need to know which type of plan your employees will have access to ahead of time so that they can be prepared for either the limitations of which doctors they can see or the higher premiums for optimal flexibility.
Contact a company like SCI & Associates to learn more.